Assess whether a control deficiency is significant or material (23d806)

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 intercompany elimination mismatch report in play. Revenue-integrity director should say what intercompany elimination mismatch report 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 intercompany elimination mismatch report after a warehouse count that came in 11% light.

Hypotheses to test

• Authorize A control deficiency is significant now; intercompany elimination mismatch report already has the discriminator after a warehouse count that came in 11% light.
• Keep Material in force until intercompany elimination mismatch report is completed after a warehouse count that came in 11% light for revenue-integrity director.
• Treat intercompany elimination mismatch report as A control deficiency is significant because both readings appear after a warehouse count that came in 11% light.
• Refuse a Forensic Accounting close: revenue-integrity director does not have the page a control deficiency is turns on in intercompany elimination mismatch report.

Analysis required

• 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.
• Reconstruct vendor, journal, or inventory lines in intercompany elimination mismatch report through the window opened by a warehouse count that came in 11% light.
• For this Forensic Accounting Occupational Fraud file, read intercompany elimination mismatch report 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 (intercompany elimination mismatch report after a warehouse count that came in 11% light). The follow-on Occupational Fraud action is what revenue-integrity director does next: implement the option, assign an owner, and log the missing fact.