Revenue leakages

I am conducting internal audit of manufacturing company, what are the areas of revenues leakeages in manufacturing industries. please help

while auditing manufacturing units following thingd can be seen upon :

1) labour charges to ghost labour

2) purchase of consumables

3) labour & tools used for manufacturing goods or fixed assets- basically capitalisation is a problem.

4) petty cash is also of major concern.

Hi Sourabh

Here are some regular possibilities of revenue leakage

1) Salary payments to fictitious employees

2) Purchases made without competetive quotations resulting in higher prices (Related parties)

3) Cash (Teeming and Lading) possible especially when both cashier and billing functions are done by the same person

4) Non Availment of tax benefits (Abatements/Exemptions)

5) Fictitious sales returns (Credit notes) raised although the customer has not returned any goods. Payment made against such amount can be siphoned off. Here Stock Physical verification remains critical