Whether related-party revenue is arm's-length from intercompany elimination

Situation

Intercompany elimination mismatch report arrived with a warehouse count that came in 11% light for forensic accountant. That is a Forensic Accounting Revenue Integrity decision on related-party revenue is arm's-length in a $280M manufacturer closing Q3.

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 intercompany elimination mismatch report after a warehouse count that came in 11% light.

Hypotheses to test

• Authorize Remove access or reverse the item now; intercompany elimination mismatch report already has the discriminator after a warehouse count that came in 11% light.
• Keep Temporary compensating control in force until intercompany elimination mismatch report is completed after a warehouse count that came in 11% light for forensic accountant.
• Treat intercompany elimination mismatch report as Approve a documented exception because both readings appear after a warehouse count that came in 11% light.
• Refuse a Forensic Accounting close: forensic accountant does not have the page related-party revenue is arm's-length turns on in intercompany elimination mismatch report.

Analysis required

• Test cutoff, reversals, and system-of-record ties for materiality on related-party revenue is arm's-length.
• Quantify the entry if forensic accountant has to reverse it.
• Separate a close-process miss from a qualitative SAB 99 issue in a $280M manufacturer closing Q3.
• For this Forensic Accounting Revenue Integrity file, read intercompany elimination mismatch report against a warehouse count that came in 11% light and write the one fact that would move related-party revenue is arm's-length 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 (intercompany elimination mismatch report after a warehouse count that came in 11% light). Lead with the Forensic Accounting option intercompany elimination mismatch report can support after a warehouse count that came in 11% light, then the two facts that force it, then the Monday action for forensic accountant in a $280M manufacturer closing Q3.