Assess whether a referral to counsel is warranted (041b30)

Situation

A tax-authority information document request put related-party customer map in front of forensic accountant in a nonprofit with restricted-fund complexity. This Forensic Accounting / Occupational Fraud close is a referral to counsel is warranted from related-party customer map, and the live options are Remove access or reverse the item, Temporary compensating control, Approve a documented exception.

Decision

Forensic accountant in a nonprofit with restricted-fund complexity must choose Remove access or reverse the item / Temporary compensating control / Approve a documented exception / Hold using related-party customer map after a tax-authority information document request.

Hypotheses to test

• Authorize Remove access or reverse the item now; related-party customer map already has the discriminator after a tax-authority information document request.
• Keep Temporary compensating control in force until related-party customer map is completed after a tax-authority information document request for forensic accountant.
• Treat related-party customer map as Approve a documented exception because both readings appear after a tax-authority information document request.
• Refuse a Forensic Accounting close: forensic accountant does not have the page a referral to counsel is warranted turns on in related-party customer map.

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 forensic accountant has to reverse it.
• For this Forensic Accounting Occupational Fraud file, read related-party customer map against a tax-authority information document request and write the one fact that would move a referral to counsel is warranted for forensic accountant.

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 tax-authority information document request). If related-party customer map cannot force a Forensic Accounting label under Occupational Fraud, stop. If related-party customer map after a tax-authority information document request cannot support Remove access or reverse the item versus Temporary compensating control on this Forensic Accounting Occupational Fraud close, forensic accountant must do not infer a control or scheme beyond the transaction and entitlement evidence.