Assess whether a referral to counsel is warranted (653b07)

Situation

Round-trip cash circularization file arrived with a whistleblower email to the hotline for external counsel's accounting expert. That is a Forensic Accounting Occupational Fraud decision on a referral to counsel is warranted in a construction contractor on percentage-of-completion.

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 round-trip cash circularization file after a whistleblower email to the hotline.

Hypotheses to test

• Round-trip cash circularization file reads as Remove access or reverse the item once a whistleblower email to the hotline is lined up to the same Forensic Accounting population.
• Round-trip cash circularization file is closer to Temporary compensating control after a whistleblower email to the hotline; Remove access or reverse the item would over-claim this Occupational Fraud extract.
• Approve a documented exception is still live in round-trip cash circularization file for external counsel's accounting expert in a construction contractor on percentage-of-completion.
• Round-trip cash circularization file is missing the fact external counsel's accounting expert needs after a whistleblower email to the hotline; 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 whistleblower email to the hotline.
• 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 whistleblower email to the hotline 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 (round-trip cash circularization file after a whistleblower email to the hotline). Lead with the Forensic Accounting option round-trip cash circularization file can support after a whistleblower email to the hotline, 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.