Assess whether a control deficiency is significant or material (00606d)

Situation

Related-Party and Corruption Risk work in a construction contractor on percentage-of-completion now turns on a control deficiency is because a covenant-compliance near-miss at the bank put management-bonus accrual workbook in play. FCPA investigation lead should say what management-bonus accrual workbook proves.

Decision

FCPA investigation lead in a construction contractor on percentage-of-completion must choose A control deficiency is significant / Material using management-bonus accrual workbook after a covenant-compliance near-miss at the bank.

Hypotheses to test

• A covenant-compliance near-miss at the bank is noise around an already-controlled Related-Party and Corruption Risk process in a construction contractor on percentage-of-completion, given management-bonus accrual workbook.
• A covenant-compliance near-miss at the bank is the event in management-bonus accrual workbook that forces A control deficiency is significant for FCPA investigation lead under Forensic Accounting.
• Management-bonus accrual workbook shows a one-file miss after a covenant-compliance near-miss at the bank, not a Related-Party and Corruption Risk program failure.
• Management-bonus accrual workbook cannot decide a control deficiency is yet after a covenant-compliance near-miss at the bank; hold is the only Forensic Accounting close a construction contractor on percentage-of-completion can defend.

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 management-bonus accrual workbook through the window opened by a covenant-compliance near-miss at the bank.
• Trace approval, SoD, and related-party links that management-bonus accrual workbook actually shows.
• For this Forensic Accounting Related-Party and Corruption Risk file, read management-bonus accrual workbook against a covenant-compliance near-miss at the bank 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 / Related-Party and Corruption Risk packet (management-bonus accrual workbook after a covenant-compliance near-miss at the bank). The follow-on Related-Party and Corruption Risk action is what FCPA investigation lead does next: implement the option, assign an owner, and log the missing fact.