diff --git a/src/libs/actions/IOU.ts b/src/libs/actions/IOU.ts
index a230549eb1af..431b5ebfb417 100644
--- a/src/libs/actions/IOU.ts
+++ b/src/libs/actions/IOU.ts
@@ -462,7 +462,7 @@ function needsToBeManuallySubmitted(report: OnyxTypes.Report) {
 /**
  * Return the object to update hasOutstandingChildRequest
  */
-function hasOutstandingChildRequest(report: OnyxTypes.Report, policy: OnyxEntry<OnyxTypes.Policy> | EmptyObject): boolean {
+function hasOutstandingChildRequest(report: OnyxTypes.Report): boolean {
     if (needsToBeManuallySubmitted(report)) {
         return true;
     }
@@ -510,7 +510,7 @@ function buildOnyxDataForMoneyRequest(
                 lastReadTime: DateUtils.getDBTime(),
                 lastMessageTranslationKey: '',
                 iouReportID: iouReport.reportID,
-                hasOutstandingChildRequest: hasOutstandingChildRequest(iouReport, policy ?? {}),
+                hasOutstandingChildRequest: hasOutstandingChildRequest(iouReport),
                 ...(isNewChatReport ? {pendingFields: {createChat: CONST.RED_BRICK_ROAD_PENDING_ACTION.ADD}} : {}),
             },
         });
diff --git a/tests/actions/IOUTest.ts b/tests/actions/IOUTest.ts
index 3326d99a8a7f..c05e98a9b492 100644
--- a/tests/actions/IOUTest.ts
+++ b/tests/actions/IOUTest.ts
@@ -3308,7 +3308,7 @@ describe('actions/IOU', () => {
                 policyID: policy.id,
             };
             await Onyx.set(`${ONYXKEYS.COLLECTION.POLICY}${policy.id}`, policy);
-            expect(IOU.hasOutstandingChildRequest(report, policy)).toBe(true);
+            expect(IOU.hasOutstandingChildRequest(report)).toBe(true);
         });
         it('should return false if an expense report does not need to be manually submitted', async () => {
             const policy = {
@@ -3321,7 +3321,7 @@ describe('actions/IOU', () => {
                 policyID: policy.id,
             };
             await Onyx.set(`${ONYXKEYS.COLLECTION.POLICY}${policy.id}`, policy);
-            expect(IOU.hasOutstandingChildRequest(report, policy)).toBe(false);
+            expect(IOU.hasOutstandingChildRequest(report)).toBe(false);
         });
         it('should return false for an IOU report where no money is owed', async () => {
             const report = {
@@ -3334,7 +3334,7 @@ describe('actions/IOU', () => {
                 email: RORY_EMAIL,
                 accountID: RORY_ACCOUNT_ID,
             });
-            expect(IOU.hasOutstandingChildRequest(report, {})).toBe(false);
+            expect(IOU.hasOutstandingChildRequest(report)).toBe(false);
         });
         it('should return true for an IOU report where money is owed and the current user is the manager', async () => {
             const report = {
@@ -3347,7 +3347,7 @@ describe('actions/IOU', () => {
                 email: RORY_EMAIL,
                 accountID: RORY_ACCOUNT_ID,
             });
-            expect(IOU.hasOutstandingChildRequest(report, {})).toBe(true);
+            expect(IOU.hasOutstandingChildRequest(report)).toBe(true);
         });
         it('should return false for an IOU report where money is owed but the current user is not the manager', async () => {
             const report = {
@@ -3359,7 +3359,7 @@ describe('actions/IOU', () => {
                 email: RORY_EMAIL,
                 accountID: RORY_ACCOUNT_ID,
             });
-            expect(IOU.hasOutstandingChildRequest(report, {})).toBe(false);
+            expect(IOU.hasOutstandingChildRequest(report)).toBe(false);
         });
     });
 });