Assess whether related-party revenue is arm's-length (741084)

SITUATION After a Big 4 inquiry on cutoff testing, related-party customer map is what external counsel's accounting expert can touch in a pre-IPO SaaS company drafting an S-1. Forensic Accounting will live with Remove access or reverse the item versus Temporary compensating control on this Inventory and Cash Schemes file.

DECISION External counsel's accounting expert 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 related-party customer map after a Big 4 inquiry on cutoff testing.

HYPOTHESES TO TEST 1. The population in related-party customer map is the one a Big 4 inquiry on cutoff testing named, so Remove access or reverse the item follows for this Inventory and Cash Schemes file. 2. The population in related-party customer map is adjacent only to a Big 4 inquiry on cutoff testing; Temporary compensating control is the honest Forensic Accounting call. 3. A pre-IPO SaaS company drafting an S-1 already contained a Big 4 inquiry on cutoff testing before related-party customer map arrived; no new Inventory and Cash Schemes path. 4. Provenance on related-party customer map after a Big 4 inquiry on cutoff testing is broken; do not pick Remove access or reverse the item or Temporary compensating control yet.

ANALYSIS REQUIRED 1. Reconstruct vendor, journal, or inventory lines in related-party customer map through the window opened by a Big 4 inquiry on cutoff testing. 2. Trace approval, SoD, and related-party links that related-party customer map actually shows. 3. Test cutoff, reversals, and system-of-record ties for materiality on related-party revenue is arm's-length. 4. For this Forensic Accounting Inventory and Cash Schemes file, read related-party customer map against a Big 4 inquiry on cutoff testing and write the one fact that would move related-party revenue is arm's-length for external counsel's accounting expert.

RECOMMENDATION Choose Remove access or reverse the item / Temporary compensating control / Approve a documented exception / Hold on this Forensic Accounting / Inventory and Cash Schemes packet (related-party customer map after a Big 4 inquiry on cutoff testing). The follow-on Inventory and Cash Schemes action is what external counsel's accounting expert 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 related-party customer map, then the action for external counsel's accounting expert - Hypothesis scorecard against related-party customer map: supported / rejected / untestable - Regulatory or exam hook Inventory and Cash Schemes would cite - Inventory and Cash Schemes finding in related-party customer map that a second reviewer can re-perform