Assess whether a control deficiency is significant or material (f42a16)

Situation

Occupational Fraud work in a multi-entity PE roll-up after a bolt-on now turns on a control deficiency is because a warehouse count that came in 11% light put ghost-employee payroll extract in play. Revenue-integrity director should say what ghost-employee payroll extract proves.

Decision

Revenue-integrity director in a multi-entity PE roll-up after a bolt-on must choose A control deficiency is significant / Material using ghost-employee payroll extract after a warehouse count that came in 11% light.

Hypotheses to test

• The population in ghost-employee payroll extract is the one a warehouse count that came in 11% light named, so A control deficiency is significant follows for this Occupational Fraud file.
• The population in ghost-employee payroll extract is adjacent only to a warehouse count that came in 11% light; Material is the honest Forensic Accounting call.
• A multi-entity PE roll-up after a bolt-on already contained a warehouse count that came in 11% light before ghost-employee payroll extract arrived; no new Occupational Fraud path.
• Provenance on ghost-employee payroll extract after a warehouse count that came in 11% light is broken; do not pick A control deficiency is significant or Material yet.

Analysis required

• Test cutoff, reversals, and system-of-record ties for materiality on a control deficiency is.
• Quantify the entry if revenue-integrity director has to reverse it.
• Separate a close-process miss from a qualitative SAB 99 issue in a multi-entity PE roll-up after a bolt-on.
• For this Forensic Accounting Occupational Fraud file, read ghost-employee payroll extract against a warehouse count that came in 11% light and write the one fact that would move a control deficiency is for revenue-integrity director.

Recommendation

Choose A control deficiency is significant / Material on this Forensic Accounting / Occupational Fraud packet (ghost-employee payroll extract after a warehouse count that came in 11% light). Lead with the Forensic Accounting option ghost-employee payroll extract can support after a warehouse count that came in 11% light, then the two facts that force it, then the Monday action for revenue-integrity director in a multi-entity PE roll-up after a bolt-on.