Assess whether books should be restated or merely adjusted (143119)

Situation

A whistleblower email to the hotline put AP vendor-master change log in front of litigation-support partner in a pre-IPO SaaS company drafting an S-1. This Forensic Accounting / Occupational Fraud close is books should be restated from AP vendor-master change log, and the live options are Books should be restated, Merely adjusted.

Decision

Litigation-support partner in a pre-IPO SaaS company drafting an S-1 must choose Books should be restated / Merely adjusted using AP vendor-master change log after a whistleblower email to the hotline.

Hypotheses to test

• A whistleblower email to the hotline is noise around an already-controlled Occupational Fraud process in a pre-IPO SaaS company drafting an S-1, given AP vendor-master change log.
• A whistleblower email to the hotline is the event in AP vendor-master change log that forces Books should be restated for litigation-support partner under Forensic Accounting.
• AP vendor-master change log shows a one-file miss after a whistleblower email to the hotline, not a Occupational Fraud program failure.
• AP vendor-master change log cannot decide books should be restated yet after a whistleblower email to the hotline; hold is the only Forensic Accounting close a pre-IPO SaaS company drafting an S-1 can defend.

Analysis required

• Test cutoff, reversals, and system-of-record ties for materiality on books should be restated.
• Quantify the entry if litigation-support partner has to reverse it.
• Separate a close-process miss from a qualitative SAB 99 issue in a pre-IPO SaaS company drafting an S-1.
• For this Forensic Accounting Occupational Fraud file, read AP vendor-master change log against a whistleblower email to the hotline and write the one fact that would move books should be restated for litigation-support partner.

Recommendation

Choose Books should be restated / Merely adjusted on this Forensic Accounting / Occupational Fraud packet (AP vendor-master change log after a whistleblower email to the hotline). Lead with the Forensic Accounting option AP vendor-master change log can support after a whistleblower email to the hotline, then the two facts that force it, then the Monday action for litigation-support partner in a pre-IPO SaaS company drafting an S-1.