Assess whether a referral to counsel is warranted (9918a1)

Situation

A referral to counsel is warranted sits with internal audit investigations manager because a Big 4 inquiry on cutoff testing hit a distributor with offshore trading affiliates. Evidence is intercompany elimination mismatch report; write the Forensic Accounting Inventory and Cash Schemes option that extract can carry.

Decision

Internal audit investigations manager in a distributor with offshore trading affiliates must choose Remove access or reverse the item / Temporary compensating control / Approve a documented exception / Hold using intercompany elimination mismatch report after a Big 4 inquiry on cutoff testing.

Hypotheses to test

• Intercompany elimination mismatch report 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.
• Intercompany elimination mismatch report is closer to Temporary compensating control after a Big 4 inquiry on cutoff testing; Remove access or reverse the item would over-claim this Inventory and Cash Schemes extract.
• Approve a documented exception is still live in intercompany elimination mismatch report for internal audit investigations manager in a distributor with offshore trading affiliates.
• Intercompany elimination mismatch report is missing the fact internal audit investigations manager needs after a Big 4 inquiry on cutoff testing; stop this Forensic Accounting close.

Analysis required

• Test cutoff, reversals, and system-of-record ties for materiality on a referral to counsel is warranted.
• Quantify the entry if internal audit investigations manager has to reverse it.
• Separate a close-process miss from a qualitative SAB 99 issue in a distributor with offshore trading affiliates.
• For this Forensic Accounting Inventory and Cash Schemes file, read intercompany elimination mismatch report against a Big 4 inquiry on cutoff testing and write the one fact that would move a referral to counsel is warranted for internal audit investigations manager.

Recommendation

Choose Remove access or reverse the item / Temporary compensating control / Approve a documented exception / Hold on this Forensic Accounting / Inventory and Cash Schemes packet (intercompany elimination mismatch report after a Big 4 inquiry on cutoff testing). The follow-on Inventory and Cash Schemes action is what internal audit investigations manager does next: implement the option, assign an owner, and log the missing fact.