Revenue Leakage Audit In Banks

This book will be very helpful doing concurrent audits in banks also.

Revenue leakage audit in banks. While leaks can come from both the revenue and the expenditure side most commonly revenue leakage refers simply to not billing or under billing your customer for products and services provided. Detection of revenue leakage is an important part of concurrent audit in banks. For the revenue leakage services ey calls in a team of people who know their way around data can untangle contracts and can critically analyze processes. Revenue leakage defined revenue leakage is the unnoticed or unintended loss of revenue from your company.

Revenue leakage revenue leakage. These conditions often result in many businesses being exposed to material levels of revenue leakage across some or all of their revenue streams. Revenue leakage refers to the under recovery in the income of the bank. In the case of big retailers we focus on the many relatively small transactions with very diverse suppliers typical for this sector.

P reconciliations of income and expenditure within the bank as well as external organizations are done on a timely basis to ensure no revenue leakage. It consists of 62 practical examples which will be very helpful for auditors to understand how to find out revenue leakage. Among these assertions the occurrence may be the most important assertion as material misstatement of revenue usually because of overstatement rather than understatement. O no debits in income accounts without sanctions from the appropriate authority.

As auditors we perform the audit of revenue by testing various audit assertions including occurrence completeness accuracy and cut off. Some businesses are aware of the value they are leaking but don t have the capability to manage this risk while others are still unaware of how much they are losing. Excess charging of the expenditure of the bank.