Assess whether a referral to counsel is warranted (84dcda)

Situation

Channel-stuffing shipping cutoff pack arrived with a Big 4 inquiry on cutoff testing for litigation-support partner. That is a Forensic Accounting Occupational Fraud decision on a referral to counsel is warranted in a pre-IPO SaaS company drafting an S-1.

Decision

Litigation-support partner in a pre-IPO SaaS company drafting an S-1 must choose Remove access or reverse the item / Temporary compensating control / Approve a documented exception / Hold using channel-stuffing shipping cutoff pack after a Big 4 inquiry on cutoff testing.

Hypotheses to test

• A Big 4 inquiry on cutoff testing is noise around an already-controlled Occupational Fraud process in a pre-IPO SaaS company drafting an S-1, given channel-stuffing shipping cutoff pack.
• A Big 4 inquiry on cutoff testing is the event in channel-stuffing shipping cutoff pack that forces Remove access or reverse the item for litigation-support partner under Forensic Accounting.
• Channel-stuffing shipping cutoff pack shows a one-file miss after a Big 4 inquiry on cutoff testing, not a Occupational Fraud program failure.
• Channel-stuffing shipping cutoff pack cannot decide a referral to counsel is warranted yet after a Big 4 inquiry on cutoff testing; hold is the only Forensic Accounting close a pre-IPO SaaS company drafting an S-1 can defend.

Analysis required

• Quantify the entry if litigation-support partner has to reverse it.
• Separate a close-process miss from a qualitative SAB 99 issue in a pre-IPO SaaS company drafting an S-1.
• Reconstruct vendor, journal, or inventory lines in channel-stuffing shipping cutoff pack through the window opened by a Big 4 inquiry on cutoff testing.
• For this Forensic Accounting Occupational Fraud file, read channel-stuffing shipping cutoff pack against a Big 4 inquiry on cutoff testing and write the one fact that would move a referral to counsel is warranted for litigation-support partner.

Recommendation

Choose Remove access or reverse the item / Temporary compensating control / Approve a documented exception / Hold on this Forensic Accounting / Occupational Fraud packet (channel-stuffing shipping cutoff pack after a Big 4 inquiry on cutoff testing). Lead with the Forensic Accounting option channel-stuffing shipping cutoff pack can support after a Big 4 inquiry on cutoff testing, then the two facts that force it, then the Monday action for litigation-support partner in a pre-IPO SaaS company drafting an S-1.