Whether inventory exists or is only on paper from management-bonus accrual

Situation

An SEC comment letter on revenue put management-bonus accrual workbook in front of restatement project controller in a construction contractor on percentage-of-completion. This Forensic Accounting / Revenue Integrity close is inventory exists or is from management-bonus accrual workbook, and the live options are Inventory exists, Is only on paper.

Decision

Restatement project controller in a construction contractor on percentage-of-completion must choose Inventory exists / Is only on paper using management-bonus accrual workbook after an SEC comment letter on revenue.

Hypotheses to test

• Management-bonus accrual workbook reads as Inventory exists once an SEC comment letter on revenue is lined up to the same Forensic Accounting population.
• Management-bonus accrual workbook is closer to Is only on paper after an SEC comment letter on revenue; Inventory exists would over-claim this Revenue Integrity extract.
• A dual reading is still live in management-bonus accrual workbook for restatement project controller in a construction contractor on percentage-of-completion.
• Management-bonus accrual workbook is missing the fact restatement project controller needs after an SEC comment letter on revenue; stop this Forensic Accounting close.

Analysis required

• Reconstruct vendor, journal, or inventory lines in management-bonus accrual workbook through the window opened by an SEC comment letter on revenue.
• Trace approval, SoD, and related-party links that management-bonus accrual workbook actually shows.
• Test cutoff, reversals, and system-of-record ties for materiality on inventory exists or is.
• For this Forensic Accounting Revenue Integrity file, read management-bonus accrual workbook against an SEC comment letter on revenue and write the one fact that would move inventory exists or is for restatement project controller.

Recommendation

Choose Inventory exists / Is only on paper on this Forensic Accounting / Revenue Integrity packet (management-bonus accrual workbook after an SEC comment letter on revenue). The follow-on Revenue Integrity action is what restatement project controller does next: implement the option, assign an owner, and log the missing fact.