Assess whether a referral to counsel is warranted (2a061c)

Situation

Occupational Fraud work in a distributor with offshore trading affiliates now turns on a referral to counsel is warranted because a tax-authority information document request put intercompany elimination mismatch report in play. Audit-committee advisor should say what intercompany elimination mismatch report proves.

Decision

Audit-committee advisor in a distributor with offshore trading affiliates must choose Remove access or reverse the item / Temporary compensating control / Approve a documented exception / Hold using intercompany elimination mismatch report after a tax-authority information document request.

Hypotheses to test

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

Analysis required

• Quantify the entry if audit-committee advisor has to reverse it.
• Separate a close-process miss from a qualitative SAB 99 issue in a distributor with offshore trading affiliates.
• Reconstruct vendor, journal, or inventory lines in intercompany elimination mismatch report through the window opened by a tax-authority information document request.
• For this Forensic Accounting Occupational Fraud file, read intercompany elimination mismatch report against a tax-authority information document request and write the one fact that would move a referral to counsel is warranted for audit-committee advisor.

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 tax-authority information document request). Lead with the Forensic Accounting option intercompany elimination mismatch report can support after a tax-authority information document request, then the two facts that force it, then the Monday action for audit-committee advisor in a distributor with offshore trading affiliates.