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Milind M. Kulkarni (Practicing CA) 24 April 2015
Hi Manoharan, I may not be able to exactly inform you how to detect revenue leakage, but you can follow the following steps to verify revenue of the company. 1. Logistics companies have a very large part of their dealings in cash. Check system of accounting for cash and its depositing in bank accounts. Also, match the invoices raised with amounts received and deposited; 2. Check whether invoicing rights are centralised or decentralised. If they are decentralised, there are chances of revenue leakage and you need to check the source documents thoroughly, to their origin; 3. Check standard price list of the Company to apply transport charges. If there is no standard price list, that leaves a huge scope for manipulation of invoice value in each individual case and you should recommend to have a standardised price list, depending on size of vehicle, weight of goods being transported and distance travelled; 4. Depending on the above, decide your extent of checking and you can identify cases if there has been any loss of revenue to the Company. Hope this helps you.
Robert (HR Manager) 28 August 2019
I have almost the same issue during our external audit, They identify a few problems and the first thing that he mentioned is revenue leakage we have a proper check and balance system. How can I find out the problem area we have is a freight forwarding company based in Dubai.