Assess whether a control deficiency is significant or material (94497d)

Situation

An FCPA agent-payment spike in one country put intercompany elimination mismatch report in front of external counsel's accounting expert in a construction contractor on percentage-of-completion. This Forensic Accounting / Occupational Fraud close is a control deficiency is from intercompany elimination mismatch report, and the live options are A control deficiency is significant, Material.

Decision

External counsel's accounting expert in a construction contractor on percentage-of-completion must choose A control deficiency is significant / Material using intercompany elimination mismatch report after an FCPA agent-payment spike in one country.

Hypotheses to test

• The population in intercompany elimination mismatch report is the one an FCPA agent-payment spike in one country named, so A control deficiency is significant follows for this Occupational Fraud file.
• The population in intercompany elimination mismatch report is adjacent only to an FCPA agent-payment spike in one country; Material is the honest Forensic Accounting call.
• A construction contractor on percentage-of-completion already contained an FCPA agent-payment spike in one country before intercompany elimination mismatch report arrived; no new Occupational Fraud path.
• Provenance on intercompany elimination mismatch report after an FCPA agent-payment spike in one country is broken; do not pick A control deficiency is significant or Material yet.

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 an FCPA agent-payment spike in one country.
• 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 an FCPA agent-payment spike in one country and write the one fact that would move a control deficiency is for external counsel's accounting expert.

Recommendation

Choose A control deficiency is significant / Material on this Forensic Accounting / Occupational Fraud packet (intercompany elimination mismatch report after an FCPA agent-payment spike in one country). 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.