Assess whether related-party revenue is arm's-length after a tax-authority

SITUATION Occupational Fraud work in a nonprofit with restricted-fund complexity now turns on related-party revenue is arm's-length because a tax-authority information document request put intercompany elimination mismatch report in play. Forensic accountant should say what intercompany elimination mismatch report proves.

DECISION Forensic accountant in a nonprofit with restricted-fund complexity 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 1. A tax-authority information document request is noise around an already-controlled Occupational Fraud process in a nonprofit with restricted-fund complexity, given intercompany elimination mismatch report. 2. A tax-authority information document request is the event in intercompany elimination mismatch report that forces Remove access or reverse the item for forensic accountant under Forensic Accounting. 3. Intercompany elimination mismatch report shows a one-file miss after a tax-authority information document request, not a Occupational Fraud program failure. 4. Intercompany elimination mismatch report cannot decide related-party revenue is arm's-length yet after a tax-authority information document request; hold is the only Forensic Accounting close a nonprofit with restricted-fund complexity can defend.

ANALYSIS REQUIRED 1. Quantify the entry if forensic accountant has to reverse it. 2. Separate a close-process miss from a qualitative SAB 99 issue in a nonprofit with restricted-fund complexity. 3. Reconstruct vendor, journal, or inventory lines in intercompany elimination mismatch report through the window opened by a tax-authority information document request. 4. 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 related-party revenue is arm's-length for forensic accountant.

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). The follow-on Occupational Fraud action is what forensic accountant does next: implement the option, assign an owner, and log the missing fact.

COMMAND RETURNS - Bottom-line Forensic Accounting option on related-party revenue is arm's-length, then the evidence in intercompany elimination mismatch report, then the action for forensic accountant - Hypothesis scorecard against intercompany elimination mismatch report: supported / rejected / untestable - Owner and next date for forensic accountant in a nonprofit with restricted-fund complexity - What changes related-party revenue is arm's-length if a tax-authority information document request is later withdrawn