Need guidance for the fallowing situation

Internal Audit 390 views 5 replies

CA Devaraju Narisetti

320 Points Joined July 2014

I need guidence regarding the Fallowing issues we are Conducting the Internal audit for the Pharmacy where they are operating in different location and they offer the dicount to the customer as fallows

1.Bill More than Rs. 100/- 10% of the Bill

2.Bill More than Rs.1000/- 12% of the Bill

3.Bill More than Rs.1500/- 15% of the Bill

Now the Issue is that,

Eg. The bill of a Customer X is Rs.95/- and bill of customer Y id Rs.80/- and the stratagy of the billing person is to Club them and both and Pocket the Dicount in his pocket. where the Individual bills are not eligible for Discount.

Now the Questions are

1.How to identify this Transactions and what audit Procedure are performed to know them,

2. And what the suggestion to the management to aviod this type of issues. Answer me as early as possible

please answe me as soon aspossible

Thanks

Replies (5)

anonymous

student

750 Points Joined May 2016

Suggestions - billing software should be amended so that once an bill is entered in the software it can only be edited by reversing the bill after taking proper authorizations.

Auditing portion - audit all the transactions for a month. there in you will be able to form a particular pattern by which you can track suh transcations. Also frequent customers/ related parties should be also checked for such extended favours.

Shubham Gupta

Business Consultants

2077 Points Joined February 2014

while scanning the product from the scanner and making a bill, time difference must be there, ask if any system modification can be done to know when the product was scanned and when bill was raised,
if the products are billed as soon as they are scanned then chances of any discrepencies are minimum, and vice versa