Assess whether a referral to counsel is warranted (636c53)

Situation

A tax-authority information document request put ghost-employee payroll extract in front of litigation-support partner in a pre-IPO SaaS company drafting an S-1. This Forensic Accounting / Occupational Fraud close is a referral to counsel is warranted from ghost-employee payroll extract, and the live options are Remove access or reverse the item, Temporary compensating control, Approve a documented exception.

Decision

Litigation-support partner in a pre-IPO SaaS company drafting an S-1 must choose Remove access or reverse the item / Temporary compensating control / Approve a documented exception / Hold using ghost-employee payroll extract after a tax-authority information document request.

Hypotheses to test

• Authorize Remove access or reverse the item now; ghost-employee payroll extract already has the discriminator after a tax-authority information document request.
• Keep Temporary compensating control in force until ghost-employee payroll extract is completed after a tax-authority information document request for litigation-support partner.
• Treat ghost-employee payroll extract as Approve a documented exception because both readings appear after a tax-authority information document request.
• Refuse a Forensic Accounting close: litigation-support partner does not have the page a referral to counsel is warranted turns on in ghost-employee payroll extract.

Analysis required

• Reconstruct vendor, journal, or inventory lines in ghost-employee payroll extract through the window opened by a tax-authority information document request.
• 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 referral to counsel is warranted.
• For this Forensic Accounting Occupational Fraud file, read ghost-employee payroll extract against a tax-authority information document request and write the one fact that would move a referral to counsel is warranted for litigation-support partner.

Recommendation

Choose Remove access or reverse the item / Temporary compensating control / Approve a documented exception / Hold on this Forensic Accounting / Occupational Fraud packet (ghost-employee payroll extract after a tax-authority information document request). The follow-on Occupational Fraud action is what litigation-support partner does next: implement the option, assign an owner, and log the missing fact.