Assess whether books should be restated or merely adjusted (4ab549)

Situation

In a construction contractor on percentage-of-completion, intercompany elimination mismatch report is the evidence after a new counterparty formed 19 days before quarter-end. External counsel's accounting expert has to pick Books should be restated or Merely adjusted for this Forensic Accounting Occupational Fraud close using intercompany elimination mismatch report.

Decision

External counsel's accounting expert in a construction contractor on percentage-of-completion must choose Books should be restated / Merely adjusted using intercompany elimination mismatch report after a new counterparty formed 19 days before quarter-end.

Hypotheses to test

• Intercompany elimination mismatch report reads as Books should be restated once a new counterparty formed 19 days before quarter-end is lined up to the same Forensic Accounting population.
• Intercompany elimination mismatch report is closer to Merely adjusted after a new counterparty formed 19 days before quarter-end; Books should be restated would over-claim this Occupational Fraud extract.
• A dual reading is still live in intercompany elimination mismatch report for external counsel's accounting expert in a construction contractor on percentage-of-completion.
• Intercompany elimination mismatch report is missing the fact external counsel's accounting expert needs after a new counterparty formed 19 days before quarter-end; stop this Forensic Accounting close.

Analysis required

• 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 intercompany elimination mismatch report through the window opened by a new counterparty formed 19 days before quarter-end.
• Trace approval, SoD, and related-party links that intercompany elimination mismatch report actually shows.
• For this Forensic Accounting Occupational Fraud file, read intercompany elimination mismatch report against a new counterparty formed 19 days before quarter-end and write the one fact that would move books should be restated for external counsel's accounting expert.

Recommendation

Choose Books should be restated / Merely adjusted on this Forensic Accounting / Occupational Fraud packet (intercompany elimination mismatch report after a new counterparty formed 19 days before quarter-end). The follow-on Occupational Fraud action is what external counsel's accounting expert does next: implement the option, assign an owner, and log the missing fact.