Close, controls & consolidation that tie out.
RestatementBanner
A restated period says so wherever it appears. A comparative column that quietly changed between two exports is how people lose trust in a system permanently.
Year ended 31 December 2025 is restated. Hosting costs of $24,000.00 were reclassified from operating expenses into cost of revenue following a review of the delivery model. Net income is unchanged; gross margin falls by 4.1 points. Restated 18 Jun 2026. A prior-period column that quietly changed between two reports destroys trust faster than the original error.
PeriodStatus
Four states, each stating its consequence in one line rather than its name alone. Who closed it is a signed-off avatar — hover or press for the name, role and timestamp. Reopening declares its blast radius before it happens, not after.
October 2026 · Open
Entries dated in this period post normally.
September 2026 · Soft closed
Adjusting entries still post; new subledger transactions do not.
August 2026 · Closed
Entries post to the next open period, flagged for cutoff review.
December 2025 · Locked
Nothing posts. Reopening requires an administrator.
CloseStatus · CloseChecklist
Seven gated sections, each with an owner and a blocker. Progress is weighted by check, not by count — ten trivial ticks and one outstanding bank reconciliation is not 91% done. Sign-off is irreversible and audited.
September 2026 close
74%Weighted by effort — ten trivial checks and one bank reconciliation is not 91% done.
- 1Subledgers closed4 of 4 checks passingA. Rivera
- 2Cash reconciled3 of 4 checks passingA. Rivera
- 3Schedules posted6 of 6 checks passingA. Rivera
- 4Accruals and deferrals5 of 7 checks passingM. Chen
- 5Balance-sheet tie-outsBlocked by Cash reconciled: The First Republic reconciliation has a $120.00 unexplained difference. — owned by A. RiveraM. Chen
- 6Flux explained2 of 4 checks passingM. Chen
- 7Reviewed and signed offBlocked by Flux explained: Two material variances have no explanation. — owned by M. ChenS. Delacroix
Weighted by effort, not by task count.
Subledgers
- Close AR subledgerA. Rivera1 Oct 2026
- Close AP subledgerA. Rivera1 Oct 2026
Cash
- Reconcile First Republic ••4417A. Rivera2 Oct 2026
Schedules
- Post prepaid amortisationA. Rivera2 Oct 2026
Tie-outs
- Tie out prepaid expensesBlocked by: Reconcile First Republic ••4417M. Chen3 Oct 2026
Flux
- Explain hosting variance, +53.7%M. Chen3 Oct 2026
Signing off a close is irreversible. Statements generated after sign-off are marked final.
ReconciliationView
Two panes, and many-to-one and one-to-many both work — real reconciliation is rarely 1:1. The difference is the number the user is trying to get to zero, so it never scrolls away. A suggestion states its basis, never a bare confidence score.
Suggested matches
- Exact amount and reference match on PMT-4417.
- Two bank deposits on the same day sum to one book receipt of $4,865.00.
Bank statement
- 4 SepACH CREDIT NORTHWIND TRADERS PMT-4417600 US Dollar
- 29 SepACH CREDIT NORTHWIND 202609293,000 US Dollar
- 29 SepACH CREDIT NORTHWIND 20260929-B1,865 US Dollar
- 30 SepSERVICE CHARGEnegative 120 US Dollar
Book entries
- 4 SepReceipt — Northwind Traders, INV-2041600 US Dollar
- 29 SepReceipt — Northwind Traders, lump sum4,865 US Dollar
IntegrityCheckPanel · EvidencePanel · MaterialityPolicy
Eleven assertions, and a failure owns the screen with the path to investigate it. Evidence carries a content hash recomputed on read — a mismatch is a finding, not a warning — and evidence is never deleted, only unlinked, with the unlink audited.
3 integrity checks failing
Nothing downstream of these numbers can be relied on until they are resolved.
Schedules tie to the GL
Prepaid expenses: the GL shows $3,298.00, the schedule shows $2,338.00.
Difference: 120 US Dollar
Cash ties to the bank
First Republic ••4417 has an unmatched $120.00 service charge.
Difference: 120 US Dollar
Entry numbering is gapless
Two gaps: JE-2026-0911, JE-2026-0912.
8 other checks
- Every entry balances
- Assets = liabilities + equity
- Subledgers tie to control accounts
- Roll-forwards are continuous
- Retained earnings roll forward
- Intercompany nets to zero
- No postings to closed periods
- No orphaned lines
Evidence
1 document changed after being attached. That is a finding.
- first-republic-sep-2026.pdfsha256:1a3f…pdf rendered inlineAttached 1 Oct 2026, 09:20 UTC by A. Rivera
- aws-usage-sep-2026.xlsxsha256:77cd…spreadsheet rendered inlineAttached 1 Oct 2026, 09:40 UTC by A. Rivera
- vendor-confirmation.emlsha256:9d21…email rendered inlineAttached 26 Sep 2026, 14:02 UTC by M. Chen
Evidence is unlinked, never deleted, and the unlink is audited.
Materiality policy
A variance flags only when it exceeds both the absolute and the relative threshold. Either alone misleads.
- Trivial floor
- 50 US Dollar — never flagged, whatever the percentage
- Absolute threshold
- 1,000 US Dollar
- Relative threshold
- 5%
Per-account overrides
- 1010 Operating cash: 0 US Dollar and 0%
- 2300 Accrued payroll: 250 US Dollar and 2%
ApprovalPolicyEditor · RoleMatrix
Two separations are structural rather than configurable: Controller is not Treasurer, and Admin cannot transact. A delegation always has an expiry, because a permanent delegation is a permission.
Approval policy
| Role | Dimension | Required above |
|---|---|---|
| Department owner | Own department only | 0 US Dollar |
| Controller | All | 1,000 US Dollar |
| CFO | All | 10,000 US Dollar |
| Board | All | 100,000 US Dollar |
Separate approver required. The preparer of a transaction can never approve it. This is fixed policy, not a setting.
Delegations
- S. Delacroix, CFO → M. Chen, Controllerexpires 14 Oct 2026
- J. Okafor, VP Engineering → P. Sandoval, DirectorNo expiry — permanent delegation is a control failure
Role matrix
Two separations are structural: Controller ≠ Treasurer, and Admin cannot transact.
AuditorMode · SamplingTool · EvidenceBundle · SubsequentEventLog
Auditor mode is read-only and says so persistently, not once. A sample states its method and its seed so it can be reproduced. A subsequent event handled the wrong way is a misstatement in one direction or an omitted disclosure in the other, so the treatment is an explicit decision with a rationale.
Auditor mode — read-only, enforced server-side
Whitcombe & Fell LLP · scope: Acme Holdings, Inc., Acme UK Ltd · Q3 2026, Q2 2026 · started 5 Oct 2026, 09:00 UTC. The scope is immutable for this session, and this session’s own activity is audited and visible to the client.
Sample selection
The method and the seed are recorded, so the selection is reproducible.
Evidence bundle
September 2026 close — Acme Holdings, Inc.. The alternative is emailing spreadsheets.
- 214Journal entries
- 4Bank statements
- 6Reconciliations
- 11Supporting schedules
- 38Approvals
Subsequent events
Between 30 Sep 2026 and 20 Oct 2026
6 Oct 2026
Fabrikam GmbH filed for insolvency. $3,109.00 was outstanding at 30 September.
Adjusting — conditions existed at period end, so the financials are adjusted
The condition — insolvency — existed at the balance-sheet date. The allowance is increased in September. — M. Chen, Controller
12 Oct 2026
Signed a lease for a second floor at 500 Howard St, commencing 1 January 2027.
Non-adjusting — conditions arose after period end, so it is disclosed only
The condition arose after the balance-sheet date. Disclosed, not accrued. — M. Chen, Controller
14 Oct 2026
Received notice of a patent claim relating to conduct in August 2026.
Treatment not yet decided
EntitySelector · ConsolidationView · IntercompanyMatrix · EliminationEntry · NciPanel
Standalone and consolidated are visually distinct, because reading a consolidated number as a standalone one is a serious error. Intercompany must net to zero and every break is named by type. Nothing is summed across entities without a stated elimination.
Acme UK Ltd — 31 March have a different fiscal year-end from the parent. These have not been summed — coterminous statements are required first.
Intercompany matrix
Every cell must have an equal and opposite counterpart. Non-zero nets are the exception queue.
1 intercompany break
- Acme Holdings, Inc. → Acme UK LtdThe UK side booked at the 28 September spot rate; the US side used the 30 September closing rate. A $240.00 translation difference, not a real break.FX240 US Dollar
ELIM-2026-09-01Consolidation level only — never appears in a standalone statement
Eliminate intercompany management fees, US → Europe
| Account | Debit | Credit |
|---|---|---|
| 4000 Revenue — Acme Holdings, Inc. | 24,000 US Dollar | |
| 5000 Cost of revenue — Acme Europe SARL | 24,000 US Dollar |
Non-controlling interest
On both statements. Omitting it overstates the parent’s share.
| Subsidiary | NCI share | Equity (balance sheet) | Income allocation (P&L) |
|---|---|---|---|
| Acme UK Ltd | 20.0% | 14,820 US Dollar | 2,340 US Dollar |
| Total | 14,820 US Dollar | 2,340 US Dollar | |
TranslationSummary · CtaRollForward · FxRevaluation · FxGainLossPanel · RateTable
Translation differences go to equity as CTA; remeasurement differences go to the P&L. Realised and unrealised FX are never combined. A missing rate is a blocking error, never a silent 1.0, and every rate carries its type and its source.
Translation summary
A translated number without its rate is unverifiable.
| Pair | Closing | Average | Historical | Source |
|---|---|---|---|---|
| EUR/USD | 1.08882 | 1.08214 | 1.10420 | ECB reference rate, 16:00 CET |
| GBP/USD | 1.27532 | 1.26940 | 1.31180 | Bank of England daily spot |
Averaging methodology: Current-rate method. Assets and liabilities at the closing rate, income and expenses at the period average, equity at historical rates. The residual goes to CTA within equity.
Cumulative translation adjustment — its own equity line
September 2026
| Opening balance | negative 12,840 US Dollar |
|---|---|
| Additions | negative 1,860 US Dollar |
| Releases | 0 US Dollar |
| Adjustments | 0 US Dollar |
| Closing balance | negative 14,700 US Dollar |
| General ledger balance | negative 14,700 US Dollar |
| Difference | 0 US Dollar |
Closing balance ties to the general ledger.
CTA is the arithmetic consequence of the translation method. Burying it makes the balance sheet look inexplicable.
Foreign exchange gain / (loss)
September 2026
| RealizedSettled — does not reverse | 314 US Dollar |
|---|---|
| UnrealizedRevaluation only — reverses next period | negative 842 US Dollar |
These are never combined. One number destroys the reader’s ability to tell what happened.
FX revaluation preview
30 Sep 2026 · monetary items only, derived from account classification. Reverses at the start of the next period.
| Account | Foreign balance | Prior rate | Closing rate | Adjustment |
|---|---|---|---|---|
| 1200 Accounts receivable | 12,400 Euro | 1.09410 | 1.08882 | negative 654 US Dollar and 72 cents |
| 2010 Accounts payable | 4,800 British Pound | 1.28020 | 1.27532 | 234 US Dollar and 24 cents |
Excluded as non-monetary: 1400 Prepaid expenses. Non-monetary items stay at historical rates.
1 required rate is missing. Translation is blocked.
- CHF/USD · closing · 30 Sep 2026
Rate table
Rate type is not optional — the same pair on the same date has different closing and average rates.