# data[].attributes.body
•£600k posted after employee left

•Description is that provision is too high, after lawyer confirmed likelihood of litigation outcome to be correct

•Adjustment is backdated, out of working hours and on a weekend

•Adjustment is a material amount

# data[].attributes.headline
Created at 21:00, Provision was too high however notes stated by professional that it was likely needed to be full amount

# data[].attributes.subject
Created at 21:00, Provision was too high however notes stated by professional that it was likely needed to be full amount

# data[].attributes.headline
Employee Left on November 8th, created 2 months after year end on 28th Feb. Round figure. 600k is material.

# data[].attributes.subject
Employee Left on November 8th, created 2 months after year end on 28th Feb. Round figure. 600k is material.

# data[].attributes.body
Backdated posting

# data[].attributes.body
Above materiality

# data[].attributes.body
The movements in the provision are material

# data[].attributes.body
Monetary impact of 35% shown on heat map, close to higher risk

# data[].attributes.body
Vague description for journal

# data[].attributes.body
Fair value adjustment of 700k however, there should be no revaluation due to there being no active market.

# data[].attributes.body
No Active market for the Intangible asset - subjective Useful Life/Scrap Value. Manual Adjustment. Round Figure. Material amount. Backposted almost 2 months after Year End. Employee left the business. Not a normal transaction. Always been capitalised, when did it leave the research phase?. On a Sunday at 3pm. Journal was Cr Sales Dr Depreciation - very unusual. Elevated Risk on Heatmap.

# data[].attributes.body
Fair value posting made on Sunday and backdated.

Lots of development costs posted in December compared to other months.

# data[].attributes.body
•Manual adjustment posted

•No revaluation is needed, therefore description is suspicious

•Adjustment posted by employee who left, and it is unusual as out of their normal scope

•It is a round number above materiality

•Posted outside of normal working hours (Sunday)

# data[].attributes.body
The jounal for the "fair value adjustment" was created by J Rahmans account on 26 Feb 22. Did employee leave the previous year?

# data[].attributes.headline
amortisation credited revenue (increasing sales), and debitted the accumulated amortisation, reducing the liability (increasing asset)

# data[].attributes.subject
amortisation credited revenue (increasing sales), and debitted the accumulated amortisation, reducing the liability (increasing asset)

# data[].attributes.body
Fair value adjustment journal was posted against sales

# data[].attributes.body
Elevated risk on heat map

# data[].attributes.body
·        Review documents provided by legal advisors confirming the amount of £800,000 and confirm this back to the financial statements.

# data[].attributes.body
Consult with an independent legal expert to review the litigation that has been provided for. Enquire and document whether they agree with the assessment from ACS' legal advisors as to the value of the claim and the likelihood of the claim being successful.

# data[].attributes.body
Observe the process of uploading a manual journal as a Test of Controls due to the transaction being posted by a Phantom employee and outside of working hours.

# data[].attributes.body
Speak with management asking why J Rahman account is still being used

# data[].attributes.body
Inspect the letter of correspondence mentioned from Carmel Retailers Ltd’s lawyers to assess valuation of the claim and the likelihood of its outcome (provision vs contingent liability).

# data[].attributes.body
Review correspondence with lawyers to understand the likelihood and value of their expected claim.

# data[].attributes.body
Enquire with the legal advisors as to the amount recommended for the provision, to identify if there has been a change to the estimated value of the claim since the initial valuation in October