Perform Freight Audit using eAuditor
Freight Audit is the process of systematically reviewing and verifying freight invoices, shipping charges, and logistics documents to ensure billing accuracy, detect discrepancies, and confirm that services were delivered as agreed. It helps businesses control transportation costs, identify overcharges, and maintain compliance with contractual terms.
Performing Freight Audit using eAuditor ensures a detailed review of freight invoices, shipping documents, and transportation charges to verify billing accuracy, detect discrepancies, and ensure compliance with contractual agreements while controlling logistics costs.
eAuditor serves as a digital inspection tool that streamlines the freight audit process by offering customizable checklists, photo evidence collection, automated calculations, and real-time reporting, making the audit process more transparent, accurate, and efficient.
Step-by-Step Process for Performing Freight Audit using eAuditor
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Preparation Before the Audit
Purpose:
To ensure all necessary documents and information are available before starting the freight audit.
Actions:
- Log into the eAuditor app on your mobile device, tablet, or computer.
- Select or create a Freight Audit Checklist Template.
- Gather required documents such as:
- Freight Invoices
- Bill of Lading (BOL)
- Shipping Contracts
- Proof of Delivery (POD)
- Rate Agreements
- Notify the finance, logistics, or procurement department about the audit schedule.
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Freight Invoice Verification
Purpose:
To ensure the accuracy of invoice details against agreed rates and services.
Key Areas to Verify:
- Carrier Name and Invoice Number
- Shipment Date and Delivery Date
- Freight Charges (Base Rate, Fuel Surcharge, Taxes)
- Currency and Payment Terms
Actions in eAuditor:
- Cross-check invoice details with rate agreements.
- Mark each field as Correct or Incorrect.
- Add comments if discrepancies are found.
- Attach photos or scanned copies of invoices for reference.
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Shipment Details Review
Purpose:
To confirm that the shipment details match the services billed on the invoice.
Key Areas to Verify:
- Shipment Weight and Dimensions
- Origin and Destination Addresses
- Number of Packages
- Service Type (Standard, Express, or Same-Day Delivery)
Actions in eAuditor:
- Compare the Bill of Lading (BOL) or Proof of Delivery (POD) with the invoice.
- Mark discrepancies as Pass or Fail.
- Attach photos or scanned documents to highlight mismatched information.
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Rate and Tariff Compliance
Purpose:
To ensure the correct freight rates and tariffs are applied according to the shipping contract or rate agreement.
Key Areas to Verify:
- Base Freight Rate
- Fuel Surcharge Percentage
- Additional Charges (Handling Fees, Customs Charges)
- Discounts or Rebates
Actions in eAuditor:
- Compare rates against the shipping contract or carrier rate sheet.
- Mark items as Accurate or Discrepant.
- Add comments on incorrect charges or missing discounts.
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Delivery Performance Assessment
Purpose:
To assess whether the delivery was completed according to the agreed terms.
Key Areas to Inspect:
- On-time Delivery
- Damaged or Missing Items
- Delivery Confirmation via Proof of Delivery (POD)
- Delivery Address Accuracy
Actions in eAuditor:
- Mark delivery status as On-Time, Delayed, or Failed.
- Attach POD documents as evidence.
- Add comments if any delivery discrepancies are found.
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Dispute Identification and Documentation
Purpose:
To highlight any billing discrepancies or contract violations.
Common Disputes to Identify:
- Overcharges on freight rates
- Incorrect fuel surcharge calculations
- Double billing
- Missing agreed discounts
Actions in eAuditor:
- Log disputes in the Dispute Section of the checklist.
- Attach supporting invoice copies or contracts.
- Add comments detailing the discrepancy and recommended resolution.
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Cost Analysis and Overcharge Detection
Purpose:
To identify overcharges and calculate the total disputed amount.
Actions in eAuditor:
- Calculate the correct charges based on the rate agreement.
- Compare them with the invoiced amount.
- Automatically calculate overcharges or undercharges using eAuditor’s custom fields.
- Add comments to explain identified discrepancies.
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Risk Assessment
Purpose:
To assess the financial impact and risk of each dispute.
Risk Categories:
- Low Risk: Minor discrepancies, no significant financial impact
- Medium Risk: Repeated minor overcharges or late deliveries
- High Risk: Significant financial loss or non-compliance with contracts
Actions in eAuditor:
- Assign a Risk Level to each dispute.
- Add comments on the potential impact and corrective action required.
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Final Review and Sign-Off
Purpose:
To finalize the audit, summarize findings, and generate the audit report.
Actions in eAuditor:
- Review all audit entries for accuracy.
- Add the Auditor’s Digital Signature.
- Automatically generate the Freight Audit Report (PDF).
- Share the report with relevant departments via email.
- Store the report in the eAuditor cloud system for future reference.
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Report Format Example
A standard Freight Audit Report generated in eAuditor includes:
- Company Name and Audit Date
- Invoice Verification Summary
- Shipment Details Review Findings
- Rate Compliance Results
- Delivery Performance Assessment
- Disputed Charges Summary
- Risk Assessment Outcome
- Corrective Action Recommendations
- Digital Signature of the Auditor
Conclusion
Performing Freight Audit using eAuditor provides a structured, transparent, and efficient way to verify freight invoices, detect overcharges, and maintain compliance with shipping agreements. The digital platform automates calculations, enhances accuracy, and generates professional reports for better financial control and logistics cost optimization.