Assess whether SAB 99 qualitative materiality is triggered (39e283)

Situation

The desk packet is ghost-employee payroll extract after a board bonus that just cleared the hurdle. External counsel's accounting expert in a county government payroll environment has to name Remove access or reverse the item or Temporary compensating control for this Forensic Accounting Related-Party and Corruption Risk file.

Decision

External counsel's accounting expert in a county government payroll environment must choose Remove access or reverse the item / Temporary compensating control / Approve a documented exception / Hold using ghost-employee payroll extract after a board bonus that just cleared the hurdle.

Hypotheses to test

• Ghost-employee payroll extract reads as Remove access or reverse the item once a board bonus that just cleared the hurdle is lined up to the same Forensic Accounting population.
• Ghost-employee payroll extract is closer to Temporary compensating control after a board bonus that just cleared the hurdle; Remove access or reverse the item would over-claim this Related-Party and Corruption Risk extract.
• Approve a documented exception is still live in ghost-employee payroll extract for external counsel's accounting expert in a county government payroll environment.
• Ghost-employee payroll extract is missing the fact external counsel's accounting expert needs after a board bonus that just cleared the hurdle; stop this Forensic Accounting close.

Analysis required

• Test cutoff, reversals, and system-of-record ties for materiality on SAB 99 qualitative materiality.
• Quantify the entry if external counsel's accounting expert has to reverse it.
• Separate a close-process miss from a qualitative SAB 99 issue in a county government payroll environment.
• For this Forensic Accounting Related-Party and Corruption Risk file, read ghost-employee payroll extract against a board bonus that just cleared the hurdle and write the one fact that would move SAB 99 qualitative materiality 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 / Related-Party and Corruption Risk packet (ghost-employee payroll extract after a board bonus that just cleared the hurdle). The follow-on Related-Party and Corruption Risk action is what external counsel's accounting expert does next: implement the option, assign an owner, and log the missing fact.