Assess whether a referral to counsel is warranted (507f64)

Situation

A referral to counsel is warranted sits with restatement project controller because a Big 4 inquiry on cutoff testing hit a pre-IPO SaaS company drafting an S-1. Evidence is round-trip cash circularization file; write the Forensic Accounting Related-Party and Corruption Risk option that extract can carry.

Decision

Restatement project controller 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 round-trip cash circularization file after a Big 4 inquiry on cutoff testing.

Hypotheses to test

• Restatement project controller can defend Remove access or reverse the item from round-trip cash circularization file after a Big 4 inquiry on cutoff testing in a Forensic Accounting challenge.
• Restatement project controller cannot defend Remove access or reverse the item from round-trip cash circularization file; Temporary compensating control is what the extract actually supports after a Big 4 inquiry on cutoff testing.
• A Big 4 inquiry on cutoff testing never reached the population in round-trip cash circularization file — reopen intake, do not close a referral to counsel is warranted.
• Two facts in round-trip cash circularization file after a Big 4 inquiry on cutoff testing conflict for restatement project controller; hold this Related-Party and Corruption Risk file.

Analysis required

• Reconstruct vendor, journal, or inventory lines in round-trip cash circularization file through the window opened by a Big 4 inquiry on cutoff testing.
• Trace approval, SoD, and related-party links that round-trip cash circularization file actually shows.
• Test cutoff, reversals, and system-of-record ties for materiality on a referral to counsel is warranted.
• For this Forensic Accounting Related-Party and Corruption Risk file, read round-trip cash circularization file against a Big 4 inquiry on cutoff testing and write the one fact that would move a referral to counsel is warranted for restatement project controller.

Recommendation

Choose Remove access or reverse the item / Temporary compensating control / Approve a documented exception / Hold on this Forensic Accounting / Related-Party and Corruption Risk packet (round-trip cash circularization file after a Big 4 inquiry on cutoff testing). Lead with the Forensic Accounting option round-trip cash circularization file can support after a Big 4 inquiry on cutoff testing, then the two facts that force it, then the Monday action for restatement project controller in a pre-IPO SaaS company drafting an S-1.