Is Referral to Counsel Warranted — Construction Contractor

Situation

AP vendor-master change log arrived with a Big 4 inquiry on cutoff testing for restatement project controller. That is a Forensic Accounting Revenue Integrity decision on a referral to counsel is warranted in a construction contractor on percentage-of-completion.

Decision

Restatement project controller 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 AP vendor-master change log after a Big 4 inquiry on cutoff testing.

Hypotheses to test

• AP vendor-master change log reads as Remove access or reverse the item once a Big 4 inquiry on cutoff testing is lined up to the same Forensic Accounting population.
• AP vendor-master change log is closer to Temporary compensating control after a Big 4 inquiry on cutoff testing; Remove access or reverse the item would over-claim this Revenue Integrity extract.
• Approve a documented exception is still live in AP vendor-master change log for restatement project controller in a construction contractor on percentage-of-completion.
• AP vendor-master change log is missing the fact restatement project controller needs after a Big 4 inquiry on cutoff testing; stop this Forensic Accounting close.

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 AP vendor-master change log through the window opened by a Big 4 inquiry on cutoff testing.
• For this Forensic Accounting Revenue Integrity file, read AP vendor-master change log against a Big 4 inquiry on cutoff testing and write the one fact that would move a referral to counsel is warranted for restatement project controller.

Recommendation

Choose Remove access or reverse the item / Temporary compensating control / Approve a documented exception / Hold on this Forensic Accounting / Revenue Integrity packet (AP vendor-master change log after a Big 4 inquiry on cutoff testing). Lead with the Forensic Accounting option AP vendor-master change log can support after a Big 4 inquiry on cutoff testing, then the two facts that force it, then the Monday action for restatement project controller in a construction contractor on percentage-of-completion.