Assess whether a vendor is a disguised related party after a tax-authority

Situation

FCPA investigation lead in a construction contractor on percentage-of-completion has one working extract — AP vendor-master change log — after a tax-authority information document request. If AP vendor-master change log cannot support a vendor is a, the honest Forensic Accounting output is hold.

Decision

FCPA investigation lead in a construction contractor on percentage-of-completion must choose Remove access or reverse the item / Temporary compensating control / Approve a documented exception / Hold using AP vendor-master change log after a tax-authority information document request.

Hypotheses to test

• AP vendor-master change log reads as Remove access or reverse the item once a tax-authority information document request is lined up to the same Forensic Accounting population.
• AP vendor-master change log is closer to Temporary compensating control after a tax-authority information document request; Remove access or reverse the item would over-claim this Related-Party and Corruption Risk extract.
• Approve a documented exception is still live in AP vendor-master change log for FCPA investigation lead in a construction contractor on percentage-of-completion.
• AP vendor-master change log is missing the fact FCPA investigation lead needs after a tax-authority information document request; stop this Forensic Accounting close.

Analysis required

• Quantify the entry if FCPA investigation lead has to reverse it.
• Separate a close-process miss from a qualitative SAB 99 issue in a construction contractor on percentage-of-completion.
• Reconstruct vendor, journal, or inventory lines in AP vendor-master change log through the window opened by a tax-authority information document request.
• For this Forensic Accounting Related-Party and Corruption Risk file, read AP vendor-master change log against a tax-authority information document request and write the one fact that would move a vendor is a for FCPA investigation lead.

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 (AP vendor-master change log after a tax-authority information document request). The follow-on Related-Party and Corruption Risk action is what FCPA investigation lead does next: implement the option, assign an owner, and log the missing fact.