Whether a control deficiency is significant or material from ghost-employee

Situation

The desk packet is ghost-employee payroll extract after a controller resignation with no documented handoff. FCPA investigation lead in a pre-IPO SaaS company drafting an S-1 has to name A control deficiency is significant or Material for this Forensic Accounting Revenue Integrity file.

Decision

FCPA investigation lead in a pre-IPO SaaS company drafting an S-1 must choose A control deficiency is significant / Material using ghost-employee payroll extract after a controller resignation with no documented handoff.

Hypotheses to test

• FCPA investigation lead can defend A control deficiency is significant from ghost-employee payroll extract after a controller resignation with no documented handoff in a Forensic Accounting challenge.
• FCPA investigation lead cannot defend A control deficiency is significant from ghost-employee payroll extract; Material is what the extract actually supports after a controller resignation with no documented handoff.
• A controller resignation with no documented handoff never reached the population in ghost-employee payroll extract — reopen intake, do not close a control deficiency is.
• Two facts in ghost-employee payroll extract after a controller resignation with no documented handoff conflict for FCPA investigation lead; hold this Revenue Integrity file.

Analysis required

• Trace approval, SoD, and related-party links that ghost-employee payroll extract actually shows.
• Test cutoff, reversals, and system-of-record ties for materiality on a control deficiency is.
• Quantify the entry if FCPA investigation lead has to reverse it.
• For this Forensic Accounting Revenue Integrity file, read ghost-employee payroll extract against a controller resignation with no documented handoff and write the one fact that would move a control deficiency is for FCPA investigation lead.

Recommendation

Choose A control deficiency is significant / Material on this Forensic Accounting / Revenue Integrity packet (ghost-employee payroll extract after a controller resignation with no documented handoff). The follow-on Revenue Integrity action is what FCPA investigation lead does next: implement the option, assign an owner, and log the missing fact.