Assess whether books should be restated or merely adjusted (75a648)

Situation

A sudden drop in days-sales-outstanding that looks too clean put ghost-employee payroll extract in front of external counsel's accounting expert in a construction contractor on percentage-of-completion. This Forensic Accounting / Occupational Fraud close is books should be restated from ghost-employee payroll extract, and the live options are Books should be restated, Merely adjusted.

Decision

External counsel's accounting expert in a construction contractor on percentage-of-completion must choose Books should be restated / Merely adjusted using ghost-employee payroll extract after a sudden drop in days-sales-outstanding that looks too clean.

Hypotheses to test

• External counsel's accounting expert can defend Books should be restated from ghost-employee payroll extract after a sudden drop in days-sales-outstanding that looks too clean in a Forensic Accounting challenge.
• External counsel's accounting expert cannot defend Books should be restated from ghost-employee payroll extract; 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 ghost-employee payroll extract — reopen intake, do not close books should be restated.
• Two facts in ghost-employee payroll extract after a sudden drop in days-sales-outstanding that looks too clean conflict for external counsel's accounting expert; hold this Occupational Fraud 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 ghost-employee payroll extract through the window opened by a sudden drop in days-sales-outstanding that looks too clean.
• Trace approval, SoD, and related-party links that ghost-employee payroll extract actually shows.
• For this Forensic Accounting Occupational Fraud file, read ghost-employee payroll extract 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 external counsel's accounting expert.

Recommendation

Choose Books should be restated / Merely adjusted on this Forensic Accounting / Occupational Fraud packet (ghost-employee payroll extract after a sudden drop in days-sales-outstanding that looks too clean). If ghost-employee payroll extract cannot force a Forensic Accounting label under Occupational Fraud, stop. Do not invent pages a construction contractor on percentage-of-completion does not have.