Assess whether a referral to counsel is warranted from round-trip cash

Situation

After a tax-authority information document request, round-trip cash circularization file is what forensic accountant can touch in a $280M manufacturer closing Q3. Forensic Accounting will live with Remove access or reverse the item versus Temporary compensating control on this Revenue Integrity file.

Decision

Forensic accountant in a $280M manufacturer closing Q3 must choose Remove access or reverse the item / Temporary compensating control / Approve a documented exception / Hold using round-trip cash circularization file after a tax-authority information document request.

Hypotheses to test

• Round-trip cash circularization file reads as Remove access or reverse the item once a tax-authority information document request is lined up to the same Forensic Accounting population.
• Round-trip cash circularization file is closer to Temporary compensating control after a tax-authority information document request; Remove access or reverse the item would over-claim this Revenue Integrity extract.
• Approve a documented exception is still live in round-trip cash circularization file for forensic accountant in a $280M manufacturer closing Q3.
• Round-trip cash circularization file is missing the fact forensic accountant needs after a tax-authority information document request; stop this Forensic Accounting close.

Analysis required

• Reconstruct vendor, journal, or inventory lines in round-trip cash circularization file through the window opened by a tax-authority information document request.
• 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 Revenue Integrity file, read round-trip cash circularization file 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 / Revenue Integrity packet (round-trip cash circularization file after a tax-authority information document request). The follow-on Revenue Integrity action is what forensic accountant does next: implement the option, assign an owner, and log the missing fact.