Whether cash ever economically changed hands from management-bonus accrual

Situation

Cash ever economically changed sits with restatement project controller because a controller resignation with no documented handoff hit a construction contractor on percentage-of-completion. Evidence is management-bonus accrual workbook; write the Forensic Accounting Revenue Integrity option that extract can carry.

Decision

Restatement project controller in a construction contractor on percentage-of-completion must choose Remove access or reverse the item / Temporary compensating control / Approve a documented exception / Hold using management-bonus accrual workbook after a controller resignation with no documented handoff.

Hypotheses to test

• Management-bonus accrual workbook reads as Remove access or reverse the item once a controller resignation with no documented handoff is lined up to the same Forensic Accounting population.
• Management-bonus accrual workbook is closer to Temporary compensating control after a controller resignation with no documented handoff; Remove access or reverse the item would over-claim this Revenue Integrity extract.
• Approve a documented exception is still live in management-bonus accrual workbook for restatement project controller in a construction contractor on percentage-of-completion.
• Management-bonus accrual workbook is missing the fact restatement project controller needs after a controller resignation with no documented handoff; stop this Forensic Accounting close.

Analysis required

• Test cutoff, reversals, and system-of-record ties for materiality on cash ever economically changed.
• Quantify the entry if restatement project controller 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 Revenue Integrity file, read management-bonus accrual workbook against a controller resignation with no documented handoff and write the one fact that would move cash ever economically changed for restatement project controller.

Recommendation

Choose Remove access or reverse the item / Temporary compensating control / Approve a documented exception / Hold on this Forensic Accounting / Revenue Integrity packet (management-bonus accrual workbook after a controller resignation with no documented handoff). The follow-on Revenue Integrity action is what restatement project controller does next: implement the option, assign an owner, and log the missing fact.