Assess whether a vendor is a disguised related party (9e9132)

Situation

A vendor is a sits with external counsel's accounting expert because a Big 4 inquiry on cutoff testing hit a county government payroll environment. Evidence is round-trip cash circularization file; write the Forensic Accounting Related-Party and Corruption Risk option that extract can carry.

Decision

External counsel's accounting expert in a county government payroll environment must choose Remove access or reverse the item / Temporary compensating control / Approve a documented exception / Hold using round-trip cash circularization file after a Big 4 inquiry on cutoff testing.

Hypotheses to test

• Round-trip cash circularization file reads as Remove access or reverse the item once a Big 4 inquiry on cutoff testing is lined up to the same Forensic Accounting population.
• Round-trip cash circularization file is closer to Temporary compensating control after a Big 4 inquiry on cutoff testing; Remove access or reverse the item would over-claim this Related-Party and Corruption Risk extract.
• Approve a documented exception is still live in round-trip cash circularization file for external counsel's accounting expert in a county government payroll environment.
• Round-trip cash circularization file is missing the fact external counsel's accounting expert needs after a Big 4 inquiry on cutoff testing; stop this Forensic Accounting close.

Analysis required

• Separate a close-process miss from a qualitative SAB 99 issue in a county government payroll environment.
• Reconstruct vendor, journal, or inventory lines in round-trip cash circularization file through the window opened by a Big 4 inquiry on cutoff testing.
• Trace approval, SoD, and related-party links that round-trip cash circularization file actually shows.
• For this Forensic Accounting Related-Party and Corruption Risk file, read round-trip cash circularization file against a Big 4 inquiry on cutoff testing and write the one fact that would move a vendor is a 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 / Related-Party and Corruption Risk packet (round-trip cash circularization file after a Big 4 inquiry on cutoff testing). If round-trip cash circularization file cannot force a Forensic Accounting label under Related-Party and Corruption Risk, stop. If round-trip cash circularization file after a Big 4 inquiry on cutoff testing cannot support Remove access or reverse the item versus Temporary compensating control on this Forensic Accounting Related-Party and Corruption Risk close, external counsel's accounting expert must do not infer a control or scheme beyond the transaction and entitlement evidence.