by Noah Green CPA CFE | Apr 9, 2026 | DD Tech Lab
A reconciliation account that should oscillate around its expected balance—intercompany clearing, suspense, accrued-payroll roll-forward—but instead wanders without bound has failed its control objective. The variance grows linearly with time; the account cannot...
by Noah Green CPA CFE | Apr 6, 2026 | DD Tech Lab
Vendor validation at engagement scale breaks when each lookup requires manual browser navigation. The auditor opens OpenCorporates, searches the vendor name, copies registration status, switches to EDGAR, runs full-text search, copies filing presence, opens PACER,...
by Noah Green CPA CFE | Apr 2, 2026 | DD Tech Lab
Round-tripping and lapping share a structural feature that breaks both First-Order Markov Modeling for Transaction-Stream Analysis in Audit’s first-order Markov framework and Hidden Markov Models for Earnings-Management Regime Detection in Public-Company...
by Noah Green CPA CFE | Mar 30, 2026 | DD Tech Lab
The vendor-employee address-overlap test addresses a specific control objective under ACFE Fraud Examiners Manual §3.5.2 and PCAOB AS 2401.A5: detecting unauthorized payments routed through fictitious vendors controlled by responsible parties. The operational form of...
by Noah Green CPA CFE | Mar 26, 2026 | DD Tech Lab
The first-order Markov framework from First-Order Markov Modeling for Transaction-Stream Analysis in Audit assumes the auditor can observe the state directly — an account class touched by a journal entry, a reconciliation status, a transaction counterparty. For...
by Noah Green CPA CFE | Mar 23, 2026 | DD Tech Lab
When utility costs scale with square footage, sales commissions track revenue, or freight charges follow tonnage shipped, the auditor needs more than ratio analysis to spot anomalies. PCAOB AS 2305.15 explicitly endorses detailed expectations over broad comparisons:...
