Assess whether a referral to counsel is warranted after a new counterparty

Situation

Restatement project controller owns a referral to counsel is warranted inside a construction contractor on percentage-of-completion with intercompany elimination mismatch report as the only packet. A new counterparty formed 19 days before quarter-end is what changed the clock for this Forensic Accounting Revenue Integrity file.

Decision

Restatement project controller 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 new counterparty formed 19 days before quarter-end.

Hypotheses to test

• A new counterparty formed 19 days before quarter-end is noise around an already-controlled Revenue Integrity process in a construction contractor on percentage-of-completion, given intercompany elimination mismatch report.
• A new counterparty formed 19 days before quarter-end is the event in intercompany elimination mismatch report that forces Remove access or reverse the item for restatement project controller under Forensic Accounting.
• Intercompany elimination mismatch report shows a one-file miss after a new counterparty formed 19 days before quarter-end, not a Revenue Integrity program failure.
• Intercompany elimination mismatch report cannot decide a referral to counsel is warranted yet after a new counterparty formed 19 days before quarter-end; 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 intercompany elimination mismatch report through the window opened by a new counterparty formed 19 days before quarter-end.
• Trace approval, SoD, and related-party links that intercompany elimination mismatch report actually shows.
• For this Forensic Accounting Revenue Integrity file, read intercompany elimination mismatch report against a new counterparty formed 19 days before quarter-end and write the one fact that would move a referral to counsel is warranted for restatement project controller.

Recommendation