Audit procedure in case of the the fallowing situation

The policy adopted by the company is to offer discount to the customer for procuring of the pharmacy. 

In your situation, the there are two different customers who are entitled for discount. You have to stratify the sales data customer wise and compare them with the discount on one to one basis to find out the difference. You may also compare the bill wise sales data with customer wise sales data.

Tq  CA Amrita Ji

It is advisable to go for Stratified sample Vouching of invoices along with the sales Ledger.
Choose a majority of samples which are Below the bill value of Rs.100 and verify the same with the ledger data.

Thank You all for the responce

Hi Devaraju,

How is the discount entry posted? Bill/Invoice wise or customer wise? 

You can generate a report from the ERP on all the clubbed invoices to identify such exceptions. 

Some of the possible suggestions :

1. Discount to be applicable only on individual invoices and not clubbed invoices.

2. In case discount to be provided on clubbed invoices, these needs to be for a same customer.

3. Monthly exception report needs to be generated for all the invoice wise discount to flag the exceptions. 

How will the billing person pocket the discount?? You mean he used to provided discounts to customers and receive any sort of kickbacks???