Assess whether books should be restated or merely adjusted

Situation

The desk packet is AP vendor-master change log after a tax-authority information document request. FCPA investigation lead in a pre-IPO SaaS company drafting an S-1 has to name Books should be restated or Merely adjusted for this Forensic Accounting Revenue Integrity file.

Decision

FCPA investigation lead in a pre-IPO SaaS company drafting an S-1 must choose Books should be restated / Merely adjusted using AP vendor-master change log after a tax-authority information document request.

Hypotheses to test

• AP vendor-master change log reads as Books should be restated once a tax-authority information document request is lined up to the same Forensic Accounting population.
• AP vendor-master change log is closer to Merely adjusted after a tax-authority information document request; Books should be restated would over-claim this Revenue Integrity extract.
• A dual reading is still live in AP vendor-master change log for FCPA investigation lead in a pre-IPO SaaS company drafting an S-1.
• AP vendor-master change log is missing the fact FCPA investigation lead needs after a tax-authority information document request; stop this Forensic Accounting close.

Analysis required

• Reconstruct vendor, journal, or inventory lines in AP vendor-master change log through the window opened by a tax-authority information document request.
• Trace approval, SoD, and related-party links that AP vendor-master change log actually shows.
• Test cutoff, reversals, and system-of-record ties for materiality on books should be restated.
• For this Forensic Accounting Revenue Integrity file, read AP vendor-master change log against a tax-authority information document request and write the one fact that would move books should be restated for FCPA investigation lead.

Recommendation

Choose Books should be restated / Merely adjusted on this Forensic Accounting / Revenue Integrity packet (AP vendor-master change log after a tax-authority information document request). The follow-on Revenue Integrity action is what FCPA investigation lead does next: implement the option, assign an owner, and log the missing fact.

Command returns