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Default Vlookup in data validation???

I have 2 workbooks, Masterlist and Report. The Masterlist has all the
employees names and what type of expense they work on (COGS or SGA). The
Report has a data validation in column A so the user can choose the employee
name. In column B the user also has to select what type of project the
employee will be working on, I have a data validation on this cell as well
(user selects from Cap, Exp or OT). If Exp is choosen I'd like the cell to go
back to the Masterlist and bring back the type of expense (COGS or SGA). The
user will not know what type of expense the employee has so they can't choose
COGS or SGA. Is this possible?

 
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