Assess whether books should be restated or merely adjusted (f893c2)

Situation

After a sudden drop in days-sales-outstanding that looks too clean, bill-and-hold side-letter folder is what FCPA investigation lead can touch in a construction contractor on percentage-of-completion. Forensic Accounting will live with Books should be restated versus Merely adjusted on this Related-Party and Corruption Risk file.

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 sudden drop in days-sales-outstanding that looks too clean.

Hypotheses to test

• FCPA investigation lead can defend Books should be restated from bill-and-hold side-letter folder after a sudden drop in days-sales-outstanding that looks too clean in a Forensic Accounting challenge.
• FCPA investigation lead cannot defend Books should be restated from bill-and-hold side-letter folder; Merely adjusted is what the extract actually supports after a sudden drop in days-sales-outstanding that looks too clean.
• A sudden drop in days-sales-outstanding that looks too clean never reached the population in bill-and-hold side-letter folder — reopen intake, do not close books should be restated.
• Two facts in bill-and-hold side-letter folder after a sudden drop in days-sales-outstanding that looks too clean conflict for FCPA investigation lead; hold this Related-Party and Corruption Risk file.

Analysis required

• Separate a close-process miss from a qualitative SAB 99 issue in a construction contractor on percentage-of-completion.
• Reconstruct vendor, journal, or inventory lines in bill-and-hold side-letter folder through the window opened by a sudden drop in days-sales-outstanding that looks too clean.
• Trace approval, SoD, and related-party links that bill-and-hold side-letter folder actually shows.
• For this Forensic Accounting Related-Party and Corruption Risk file, read bill-and-hold side-letter folder against a sudden drop in days-sales-outstanding that looks too clean 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 sudden drop in days-sales-outstanding that looks too clean). 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.