Assess whether books should be restated or merely adjusted (1c105a)

Situation

Related-Party and Corruption Risk work in a construction contractor on percentage-of-completion now turns on books should be restated because a covenant-compliance near-miss at the bank put bill-and-hold side-letter folder in play. FCPA investigation lead should say what bill-and-hold side-letter folder proves.

Decision

FCPA investigation lead in a construction contractor on percentage-of-completion must choose Books should be restated / Merely adjusted using bill-and-hold side-letter folder after a covenant-compliance near-miss at the bank.

Hypotheses to test

• Bill-and-hold side-letter folder reads as Books should be restated once a covenant-compliance near-miss at the bank is lined up to the same Forensic Accounting population.
• Bill-and-hold side-letter folder is closer to Merely adjusted after a covenant-compliance near-miss at the bank; Books should be restated would over-claim this Related-Party and Corruption Risk extract.
• A dual reading is still live in bill-and-hold side-letter folder for FCPA investigation lead in a construction contractor on percentage-of-completion.
• Bill-and-hold side-letter folder is missing the fact FCPA investigation lead needs after a covenant-compliance near-miss at the bank; stop this Forensic Accounting close.

Analysis required

• Test cutoff, reversals, and system-of-record ties for materiality on books should be restated.
• Quantify the entry if FCPA investigation lead has to reverse it.
• Separate a close-process miss from a qualitative SAB 99 issue in a construction contractor on percentage-of-completion.
• For this Forensic Accounting Related-Party and Corruption Risk file, read bill-and-hold side-letter folder against a covenant-compliance near-miss at the bank 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 / Related-Party and Corruption Risk packet (bill-and-hold side-letter folder after a covenant-compliance near-miss at the bank). The follow-on Related-Party and Corruption Risk action is what FCPA investigation lead does next: implement the option, assign an owner, and log the missing fact.