Assess whether cash ever economically changed hands (513e26)

Situation

An SEC comment letter on revenue put intercompany elimination mismatch report in front of FCPA investigation lead in a construction contractor on percentage-of-completion. This Forensic Accounting / Related-Party and Corruption Risk close is cash ever economically changed from intercompany elimination mismatch report, and the live options are Remove access or reverse the item, Temporary compensating control, Approve a documented exception.

Decision

FCPA investigation lead in a construction contractor on percentage-of-completion 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

• Intercompany elimination mismatch report reads as Remove access or reverse the item once an SEC comment letter on revenue is lined up to the same Forensic Accounting population.
• Intercompany elimination mismatch report is closer to Temporary compensating control after an SEC comment letter on revenue; Remove access or reverse the item would over-claim this Related-Party and Corruption Risk extract.
• Approve a documented exception is still live in intercompany elimination mismatch report for FCPA investigation lead in a construction contractor on percentage-of-completion.
• Intercompany elimination mismatch report is missing the fact FCPA investigation lead needs after an SEC comment letter on revenue; stop this Forensic Accounting close.

Analysis required

• Reconstruct vendor, journal, or inventory lines in intercompany elimination mismatch report through the window opened by an SEC comment letter on revenue.
• 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 cash ever economically changed.
• For this Forensic Accounting Related-Party and Corruption Risk file, read intercompany elimination mismatch report against an SEC comment letter on revenue and write the one fact that would move cash ever economically changed for FCPA investigation lead.

Recommendation

Choose Remove access or reverse the item / Temporary compensating control / Approve a documented exception / Hold on this Forensic Accounting / Related-Party and Corruption Risk packet (intercompany elimination mismatch report after an SEC comment letter on revenue). Lead with the Forensic Accounting option intercompany elimination mismatch report can support after an SEC comment letter on revenue, then the two facts that force it, then the Monday action for FCPA investigation lead in a construction contractor on percentage-of-completion.