Assess whether a referral to counsel is warranted (b94df8)

Situation

External counsel's accounting expert in a construction contractor on percentage-of-completion has one working extract — intercompany elimination mismatch report — after a controller resignation with no documented handoff. If intercompany elimination mismatch report cannot support a referral to counsel is warranted, the honest Forensic Accounting output is hold.

Decision

External counsel's accounting expert in a construction contractor on percentage-of-completion must choose Remove access or reverse the item / Temporary compensating control / Approve a documented exception / Hold using intercompany elimination mismatch report after a controller resignation with no documented handoff.

Hypotheses to test

• Intercompany elimination mismatch report reads as Remove access or reverse the item once a controller resignation with no documented handoff is lined up to the same Forensic Accounting population.
• Intercompany elimination mismatch report is closer to Temporary compensating control after a controller resignation with no documented handoff; Remove access or reverse the item would over-claim this Occupational Fraud extract.
• Approve a documented exception is still live in intercompany elimination mismatch report for external counsel's accounting expert in a construction contractor on percentage-of-completion.
• Intercompany elimination mismatch report is missing the fact external counsel's accounting expert needs after a controller resignation with no documented handoff; stop this Forensic Accounting close.

Analysis required

• Test cutoff, reversals, and system-of-record ties for materiality on a referral to counsel is warranted.
• Quantify the entry if external counsel's accounting expert has to reverse it.
• Separate a close-process miss from a qualitative SAB 99 issue in a construction contractor on percentage-of-completion.
• For this Forensic Accounting Occupational Fraud file, read intercompany elimination mismatch report against a controller resignation with no documented handoff and write the one fact that would move a referral to counsel is warranted for external counsel's accounting expert.

Recommendation

Choose Remove access or reverse the item / Temporary compensating control / Approve a documented exception / Hold on this Forensic Accounting / Occupational Fraud packet (intercompany elimination mismatch report after a controller resignation with no documented handoff). Lead with the Forensic Accounting option intercompany elimination mismatch report can support after a controller resignation with no documented handoff, then the two facts that force it, then the Monday action for external counsel's accounting expert in a construction contractor on percentage-of-completion.