Assess whether books should be restated or merely adjusted from intercompany

Situation

Intercompany elimination mismatch report arrived with an SEC comment letter on revenue for restatement project controller. That is a Forensic Accounting Revenue Integrity decision on books should be restated in a construction contractor on percentage-of-completion.

Decision

Restatement project controller in a construction contractor on percentage-of-completion must choose Books should be restated / Merely adjusted using intercompany elimination mismatch report after an SEC comment letter on revenue.

Hypotheses to test

• Authorize Books should be restated now; intercompany elimination mismatch report already has the discriminator after an SEC comment letter on revenue.
• Keep Merely adjusted in force until intercompany elimination mismatch report is completed after an SEC comment letter on revenue for restatement project controller.
• Treat intercompany elimination mismatch report as Books should be restated because both readings appear after an SEC comment letter on revenue.
• Refuse a Forensic Accounting close: restatement project controller does not have the page books should be restated turns on in intercompany elimination mismatch report.

Analysis required

• Quantify the entry if restatement project controller 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 intercompany elimination mismatch report through the window opened by an SEC comment letter on revenue.
• For this Forensic Accounting Revenue Integrity file, read intercompany elimination mismatch report against an SEC comment letter on revenue and write the one fact that would move books should be restated for restatement project controller.

Recommendation

Choose Books should be restated / Merely adjusted on this Forensic Accounting / Revenue Integrity packet (intercompany elimination mismatch report after an SEC comment letter on revenue). If intercompany elimination mismatch report cannot force a Forensic Accounting label under Revenue Integrity, stop. If intercompany elimination mismatch report after an SEC comment letter on revenue cannot support Books should be restated versus Merely adjusted on this Forensic Accounting Revenue Integrity close, restatement project controller must do not infer a control or scheme beyond the transaction and entitlement evidence.