Internal audit approaches for detecting revenue leakages: a study on Royal Cement Limited based on internship at KPMG Bangladesh

Abstract

This report reflects the experiences and findings of my three-month internship (July-September 2025) at Rahman Rahman Huq (KPMG Bangladesh) where I did my work on internal audit techniques to determine the revenue leakages in Royal Cement Limited. The research was concerned with the way internal audits can identify and deal with revenue losses that occur as a result of shipment discrepancies, unauthorized discounts, slow invoicing, documentation mistakes, and Treatment of Tax Deducted at Source (TDS). The internship enabled me to have hands-on experience in internal audit procedures, which included reviewing sales transactions, reviewing financial records and testing adherence to company policies and tax laws. Major goals were to map the revenue cycle, to determine the current practice of audit, to compare the old and the new audit methods, and to suggest the activities that can enhance the internal control. The results have shown that traditional audits have a tendency to find anomalies post-factum, whereas the newer methods, including risk-based auditing and continuous monitoring with the help of analytics, are more efficient at revealing the leakages in a timely and precise way. The paper has also highlighted the need to embrace technology, enhance internal controls, enhance staff training, and ensure strict compliance with regulations as a way of reducing revenue losses. In the light of these insights, it is recommended to integrate the tools that are based on data, improve documentation practices, better adherence to TDS requirements, and encourage the proactive form of auditing as the means to alleviate both financial and operational risks. In general, the internship has been a good experience of learning that helped to close the gap between theory and practice. It not only gave substantial information to Royal Cement Limited but also to internal auditors and regulatory bodies that strive to protect sources of revenue and the maintenance of corporate governance principles in the manufacturing industry in Bangladesh.