Assess whether a referral to counsel is warranted (5c86a4)

Situation

A construction contractor on percentage-of-completion cannot treat a new counterparty formed 19 days before quarter-end as color commentary on related-party customer map. External counsel's accounting expert must close a referral to counsel is warranted from that extract under Forensic Accounting / Occupational Fraud.

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 related-party customer map 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 related-party customer map.
• A new counterparty formed 19 days before quarter-end is the event in related-party customer map that forces Remove access or reverse the item for external counsel's accounting expert under Forensic Accounting.
• Related-party customer map shows a one-file miss after a new counterparty formed 19 days before quarter-end, not a Occupational Fraud program failure.
• Related-party customer map 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

• Trace approval, SoD, and related-party links that related-party customer map actually shows.
• Test cutoff, reversals, and system-of-record ties for materiality on a referral to counsel is warranted.
• Quantify the entry if external counsel's accounting expert has to reverse it.
• For this Forensic Accounting Occupational Fraud file, read related-party customer map 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

Choose Remove access or reverse the item / Temporary compensating control / Approve a documented exception / Hold on this Forensic Accounting / Occupational Fraud packet (related-party customer map after a new counterparty formed 19 days before quarter-end). Lead with the Forensic Accounting option related-party customer map can support after a new counterparty formed 19 days before quarter-end, then the two facts that force it, then the Monday action for external counsel's accounting expert in a construction contractor on percentage-of-completion.