Assess whether a referral to counsel is warranted (6915cf)

Situation

In a distributor with offshore trading affiliates, round-trip cash circularization file is the evidence after a new counterparty formed 19 days before quarter-end. Audit-committee advisor has to pick Remove access or reverse the item or Temporary compensating control for this Forensic Accounting Occupational Fraud close using round-trip cash circularization file.

Decision

Audit-committee advisor in a distributor with offshore trading affiliates must choose Remove access or reverse the item / Temporary compensating control / Approve a documented exception / Hold using round-trip cash circularization file after a new counterparty formed 19 days before quarter-end.

Hypotheses to test

• The population in round-trip cash circularization file is the one a new counterparty formed 19 days before quarter-end named, so Remove access or reverse the item follows for this Occupational Fraud file.
• The population in round-trip cash circularization file is adjacent only to a new counterparty formed 19 days before quarter-end; Temporary compensating control is the honest Forensic Accounting call.
• A distributor with offshore trading affiliates already contained a new counterparty formed 19 days before quarter-end before round-trip cash circularization file arrived; no new Occupational Fraud path.
• Provenance on round-trip cash circularization file after a new counterparty formed 19 days before quarter-end is broken; do not pick Remove access or reverse the item or Temporary compensating control yet.

Analysis required

• Reconstruct vendor, journal, or inventory lines in round-trip cash circularization file through the window opened by a new counterparty formed 19 days before quarter-end.
• 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 Occupational Fraud file, read round-trip cash circularization file 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 audit-committee advisor.

Recommendation

Choose Remove access or reverse the item / Temporary compensating control / Approve a documented exception / Hold on this Forensic Accounting / Occupational Fraud packet (round-trip cash circularization file after a new counterparty formed 19 days before quarter-end). Lead with the Forensic Accounting option round-trip cash circularization file can support after a new counterparty formed 19 days before quarter-end, then the two facts that force it, then the Monday action for audit-committee advisor in a distributor with offshore trading affiliates.