Assess whether a referral to counsel is warranted (a7d92d)

Situation

Occupational Fraud work in a pre-IPO SaaS company drafting an S-1 now turns on a referral to counsel is warranted because a warehouse count that came in 11% light put management-bonus accrual workbook in play. Litigation-support partner should say what management-bonus accrual workbook proves.

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 management-bonus accrual workbook after a warehouse count that came in 11% light.

Hypotheses to test

• Management-bonus accrual workbook reads as Remove access or reverse the item once a warehouse count that came in 11% light is lined up to the same Forensic Accounting population.
• Management-bonus accrual workbook is closer to Temporary compensating control after a warehouse count that came in 11% light; Remove access or reverse the item would over-claim this Occupational Fraud extract.
• Approve a documented exception is still live in management-bonus accrual workbook for litigation-support partner in a pre-IPO SaaS company drafting an S-1.
• Management-bonus accrual workbook is missing the fact litigation-support partner needs after a warehouse count that came in 11% light; 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 litigation-support partner has to reverse it.
• Separate a close-process miss from a qualitative SAB 99 issue in a pre-IPO SaaS company drafting an S-1.
• For this Forensic Accounting Occupational Fraud file, read management-bonus accrual workbook against a warehouse count that came in 11% light 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 (management-bonus accrual workbook after a warehouse count that came in 11% light). The follow-on Occupational Fraud action is what litigation-support partner does next: implement the option, assign an owner, and log the missing fact.