Assess whether SAB 99 qualitative materiality is triggered (f15a78)

Situation

The desk packet is ghost-employee payroll extract after a sudden drop in days-sales-outstanding that looks too clean. Restatement project controller in a county government payroll environment has to name Remove access or reverse the item or Temporary compensating control for this Forensic Accounting Occupational Fraud file.

Decision

Restatement project controller in a county government payroll environment must choose Remove access or reverse the item / Temporary compensating control / Approve a documented exception / Hold using ghost-employee payroll extract after a sudden drop in days-sales-outstanding that looks too clean.

Hypotheses to test

• Authorize Remove access or reverse the item now; ghost-employee payroll extract already has the discriminator after a sudden drop in days-sales-outstanding that looks too clean.
• Keep Temporary compensating control in force until ghost-employee payroll extract is completed after a sudden drop in days-sales-outstanding that looks too clean for restatement project controller.
• Treat ghost-employee payroll extract as Approve a documented exception because both readings appear after a sudden drop in days-sales-outstanding that looks too clean.
• Refuse a Forensic Accounting close: restatement project controller does not have the page SAB 99 qualitative materiality turns on in ghost-employee payroll extract.

Analysis required

• Test cutoff, reversals, and system-of-record ties for materiality on SAB 99 qualitative materiality.
• Quantify the entry if restatement project controller has to reverse it.
• Separate a close-process miss from a qualitative SAB 99 issue in a county government payroll environment.
• For this Forensic Accounting Occupational Fraud file, read ghost-employee payroll extract against a sudden drop in days-sales-outstanding that looks too clean and write the one fact that would move SAB 99 qualitative materiality for restatement project controller.

Recommendation

Choose Remove access or reverse the item / Temporary compensating control / Approve a documented exception / Hold on this Forensic Accounting / Occupational Fraud packet (ghost-employee payroll extract after a sudden drop in days-sales-outstanding that looks too clean). The follow-on Occupational Fraud action is what restatement project controller does next: implement the option, assign an owner, and log the missing fact.