Assess whether a referral to counsel is warranted (53224b)

Situation

The desk packet is channel-stuffing shipping cutoff pack after a new counterparty formed 19 days before quarter-end. External counsel's accounting expert in a construction contractor on percentage-of-completion has to name Remove access or reverse the item or Temporary compensating control for this Forensic Accounting Occupational Fraud file.

Decision

External counsel's accounting expert 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 channel-stuffing shipping cutoff pack after a new counterparty formed 19 days before quarter-end.

Hypotheses to test

• A new counterparty formed 19 days before quarter-end is noise around an already-controlled Occupational Fraud process in a construction contractor on percentage-of-completion, given channel-stuffing shipping cutoff pack.
• A new counterparty formed 19 days before quarter-end is the event in channel-stuffing shipping cutoff pack that forces Remove access or reverse the item for external counsel's accounting expert under Forensic Accounting.
• Channel-stuffing shipping cutoff pack shows a one-file miss after a new counterparty formed 19 days before quarter-end, not a Occupational Fraud program failure.
• Channel-stuffing shipping cutoff pack cannot decide a referral to counsel is warranted yet after a new counterparty formed 19 days before quarter-end; hold is the only Forensic Accounting close a construction contractor on percentage-of-completion can defend.

Analysis required

• Quantify the entry if external counsel's accounting expert 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 channel-stuffing shipping cutoff pack through the window opened by a new counterparty formed 19 days before quarter-end.
• For this Forensic Accounting Occupational Fraud file, read channel-stuffing shipping cutoff pack against a new counterparty formed 19 days before quarter-end and write the one fact that would move a referral to counsel is warranted for external counsel's accounting expert.

Recommendation