Assess whether SAB 99 qualitative materiality is triggered (cb8117)

Situation

A tax-authority information document request put ghost-employee payroll extract in front of restatement project controller in a pre-IPO SaaS company drafting an S-1. This Forensic Accounting / Related-Party and Corruption Risk close is SAB 99 qualitative materiality from ghost-employee payroll extract, and the live options are Remove access or reverse the item, Temporary compensating control, Approve a documented exception.

Decision

Restatement project controller in a pre-IPO SaaS company drafting an S-1 must choose Remove access or reverse the item / Temporary compensating control / Approve a documented exception / Hold using ghost-employee payroll extract after a tax-authority information document request.

Hypotheses to test

• Restatement project controller can defend Remove access or reverse the item from ghost-employee payroll extract after a tax-authority information document request in a Forensic Accounting challenge.
• Restatement project controller cannot defend Remove access or reverse the item from ghost-employee payroll extract; Temporary compensating control is what the extract actually supports after a tax-authority information document request.
• A tax-authority information document request never reached the population in ghost-employee payroll extract — reopen intake, do not close SAB 99 qualitative materiality.
• Two facts in ghost-employee payroll extract after a tax-authority information document request conflict for restatement project controller; hold this Related-Party and Corruption Risk file.

Analysis required

• Separate a close-process miss from a qualitative SAB 99 issue in a pre-IPO SaaS company drafting an S-1.
• Reconstruct vendor, journal, or inventory lines in ghost-employee payroll extract through the window opened by a tax-authority information document request.
• Trace approval, SoD, and related-party links that ghost-employee payroll extract actually shows.
• For this Forensic Accounting Related-Party and Corruption Risk file, read ghost-employee payroll extract against a tax-authority information document request 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 / Related-Party and Corruption Risk packet (ghost-employee payroll extract after a tax-authority information document request). The follow-on Related-Party and Corruption Risk action is what restatement project controller does next: implement the option, assign an owner, and log the missing fact.