Whether bonus triggers were gamed by cutoff from intercompany elimination

Situation

Litigation-support partner owns bonus triggers were gamed inside a pre-IPO SaaS company drafting an S-1 with intercompany elimination mismatch report as the only packet. An SEC comment letter on revenue is what changed the clock for this Forensic Accounting Occupational Fraud file.

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 intercompany elimination mismatch report after an SEC comment letter on revenue.

Hypotheses to test

• Authorize Remove access or reverse the item now; intercompany elimination mismatch report already has the discriminator after an SEC comment letter on revenue.
• Keep Temporary compensating control in force until intercompany elimination mismatch report is completed after an SEC comment letter on revenue for litigation-support partner.
• Treat intercompany elimination mismatch report as Approve a documented exception because both readings appear after an SEC comment letter on revenue.
• Refuse a Forensic Accounting close: litigation-support partner does not have the page bonus triggers were gamed turns on in intercompany elimination mismatch report.

Analysis required

• Trace approval, SoD, and related-party links that intercompany elimination mismatch report actually shows.
• Test cutoff, reversals, and system-of-record ties for materiality on bonus triggers were gamed.
• Quantify the entry if litigation-support partner has to reverse it.
• For this Forensic Accounting Occupational Fraud file, read intercompany elimination mismatch report against an SEC comment letter on revenue and write the one fact that would move bonus triggers were gamed 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 (intercompany elimination mismatch report after an SEC comment letter on revenue). The follow-on Occupational Fraud action is what litigation-support partner does next: implement the option, assign an owner, and log the missing fact.