Whether a referral to counsel is warranted from management-bonus accrual

Situation

Management-bonus accrual workbook arrived with a controller resignation with no documented handoff for audit-committee advisor. That is a Forensic Accounting Revenue Integrity decision on a referral to counsel is warranted in a nonprofit with restricted-fund complexity.

Decision

Audit-committee advisor in a nonprofit with restricted-fund complexity must choose Remove access or reverse the item / Temporary compensating control / Approve a documented exception / Hold using management-bonus accrual workbook after a controller resignation with no documented handoff.

Hypotheses to test

• A controller resignation with no documented handoff is noise around an already-controlled Revenue Integrity process in a nonprofit with restricted-fund complexity, given management-bonus accrual workbook.
• A controller resignation with no documented handoff is the event in management-bonus accrual workbook that forces Remove access or reverse the item for audit-committee advisor under Forensic Accounting.
• Management-bonus accrual workbook shows a one-file miss after a controller resignation with no documented handoff, not a Revenue Integrity program failure.
• Management-bonus accrual workbook cannot decide a referral to counsel is warranted yet after a controller resignation with no documented handoff; hold is the only Forensic Accounting close a nonprofit with restricted-fund complexity can defend.

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 nonprofit with restricted-fund complexity.
• Reconstruct vendor, journal, or inventory lines in management-bonus accrual workbook through the window opened by a controller resignation with no documented handoff.
• For this Forensic Accounting Revenue Integrity file, read management-bonus accrual workbook against a controller resignation with no documented handoff and write the one fact that would move a referral to counsel is warranted for audit-committee advisor.

Recommendation

Audit-committee advisor should take Temporary compensating control on a referral to counsel is warranted unless management-bonus accrual workbook after a controller resignation with no documented handoff already proves Remove access or reverse the item for this Revenue Integrity packet in a nonprofit with restricted-fund complexity. Keep Approve a documented exception live only while management-bonus accrual workbook is missing the page a referral to counsel is warranted turns on. The working test on management-bonus accrual workbook is whether Quantify the entry if audit-committee advisor has to reverse it..