Assess whether cash ever economically changed hands (009a8b)

Situation

Cash ever economically changed sits with restatement project controller because a covenant-compliance near-miss at the bank hit a county government payroll environment. Evidence is intercompany elimination mismatch report; write the Forensic Accounting Occupational Fraud option that extract can carry.

Decision

Restatement project controller in a county government payroll environment must choose Remove access or reverse the item / Temporary compensating control / Approve a documented exception / Hold using intercompany elimination mismatch report after a covenant-compliance near-miss at the bank.

Hypotheses to test

• The population in intercompany elimination mismatch report is the one a covenant-compliance near-miss at the bank named, so Remove access or reverse the item follows for this Occupational Fraud file.
• The population in intercompany elimination mismatch report is adjacent only to a covenant-compliance near-miss at the bank; Temporary compensating control is the honest Forensic Accounting call.
• A county government payroll environment already contained a covenant-compliance near-miss at the bank before intercompany elimination mismatch report arrived; no new Occupational Fraud path.
• Provenance on intercompany elimination mismatch report after a covenant-compliance near-miss at the bank is broken; do not pick Remove access or reverse the item or Temporary compensating control yet.

Analysis required

• Test cutoff, reversals, and system-of-record ties for materiality on cash ever economically changed.
• Quantify the entry if restatement project controller has to reverse it.
• Separate a close-process miss from a qualitative SAB 99 issue in a county government payroll environment.
• For this Forensic Accounting Occupational Fraud file, read intercompany elimination mismatch report against a covenant-compliance near-miss at the bank and write the one fact that would move cash ever economically changed for restatement project controller.

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 a covenant-compliance near-miss at the bank). The follow-on Occupational Fraud action is what restatement project controller does next: implement the option, assign an owner, and log the missing fact.