Before submitting the spreadsheet, you will need to update the name of the file. If you are working individually, update the name of the file with your last name, first name. If you are working in a two-person group, update the name of the file with your last names in alphabetical order. Groups only need to submit each deliverable once.

Required

3. Tailoring RMMs to the specific revenue streams and assertions is an important step in designing an audit plan for revenue. Now that you have identified the RMMs that are applicable to the contract between TP and Fountain, how might you tailor the RMMs that you identified in Activity 2 to the facts presented in this case? In column C of the Activities 3-6 tab of the Excel spreadsheet, tailor the RMM for the contract between TP and Fountain.
4. In column D of the Activities 3-6 tab of the Excel spreadsheet, list the transaction-related assertion you think this RMM is most addressing. In column E, explain why the RMM is most related to the assertion you selected.

Only list one assertion for each RMM. Several RMMs may have the same assertion.

5. Read over TPs internal controls on the Internal Control Matrix tab of the Excel spreadsheet. In column F of the Activities 3-6 tab, identify which internal control is relevant for each tailored RMM by listing the control number. In column G, provide an explanation for why that control relates to the RMM.

If REV 7 is identified as a relevant internal control, identify which specific step (and substep, if applicable) of REV 7 addresses the RMM. Some RMMs may have multiple relevant controls. No control will be used for multiple RMM.

6. Finally, design a substantive procedures that would adequately address the tailored RMMs identified in Activity 3. Each RMM should have at least one test of details procedure to address the RMM. In column H of the Activities 3-6 tab, list the test(s) of transactions the engagement team should perform to satisfy this RMM. In column I, explain how the substantive procedure would adequately provide evidence to for the RMMs relevant assertion you identified.

Note that because the RMMs are all related to one contract, we do not need to pick a sample for testing nor do we it be appropriate to apply substantive analytical procedures.

AutoSave CH H2 Last Name, First Name - TP Casc Part 2(1) - Search (Alti) shana benjamin SE File Home Insert Draw Page Layout Formulas Data Review View Help Comments Share 2 AutoSum Calibri w 11 ~ == PM Wrap Text General 2 o Fich) Paste X Out [B Copy Format Painter Clipboard BIU O A E Merge & Center $ -% -23 Insert Delete Format Clear Conditional Formatas Cell Formatting Table Styles Styles Sort & Find & Filter Select Analyze Data Font Alignment Number Colls Editing Analysis 05 C C D F G H I K L M N D P A 1 Top Promotions, Inc. 2 Activities 3-6 3 4 Activity Activity 4 Activity How does this control help prevent or detect and correct this RMM? Transaction-Related Audit Why is this assertion most Tailored RAM Description Objective lice, assertion) relevant for this RMM? Activity How would this audit Substantive Tests of procedure provide Tract evidence for this RMM? Control Number RUMM 5 No. Nu Generic HMM Description All promised goods or services in the most 2 the contract are not distinct, causing revenue to be recorded in the 0 wrong period. The transaction price has not been 4 allocated to performance obligations on a relative stand 7 7 alone selling price basis The fixed consideration identified in the transaction price of the 5 > contract is identified at the Incorrect amount or does not meet the 8 definition of fixed consideration. 9 Revenue is recognized whena 6 contract (as defined by ASC 606 10 25.1) does not exist. 10 11 7 12 The amount of variable wartaal consideration is rendedatan incorrect amount 13 14 13 Note: Two of Top Promotions internal controls relate to HMM#5 and three relate to RMM 17. If you use Control No. REV 7, you need to clarify which Step applies (e... HEV 7 Step B). 16 17 19 19 Activities 3-6 + Internal Control Matrix Reacy Accessblity: Good to go 1 HI 80% Type here to search O El a X p 66F C 2:50 PM 3/24/2022 P AutoSave CH H2 Last Name, First Name - TP Casc Part 2(1) - Search (Alti) shana benjamin SE File Home Insert Draw Page Layout Formulas Data Review View Help Comments Share 2 AutoSum Calibri w 11 ~ == PM Wrap Text General 2 o Fich) Paste X Out [B Copy Format Painter Clipboard BIU O A E Merge & Center $ -% -23 Insert Delete Format Clear Conditional Formatas Cell Formatting Table Styles Styles Sort & Find & Filter Select Analyze Data Font Alignment Number Colls Editing Analysis 05 C C D F G H I K L M N D P A 1 Top Promotions, Inc. 2 Activities 3-6 3 4 Activity Activity 4 Activity How does this control help prevent or detect and correct this RMM? Transaction-Related Audit Why is this assertion most Tailored RAM Description Objective lice, assertion) relevant for this RMM? Activity How would this audit Substantive Tests of procedure provide Tract evidence for this RMM? Control Number RUMM 5 No. Nu Generic HMM Description All promised goods or services in the most 2 the contract are not distinct, causing revenue to be recorded in the 0 wrong period. The transaction price has not been 4 allocated to performance obligations on a relative stand 7 7 alone selling price basis The fixed consideration identified in the transaction price of the 5 > contract is identified at the Incorrect amount or does not meet the 8 definition of fixed consideration. 9 Revenue is recognized whena 6 contract (as defined by ASC 606 10 25.1) does not exist. 10 11 7 12 The amount of variable wartaal consideration is rendedatan incorrect amount 13 14 13 Note: Two of Top Promotions internal controls relate to HMM#5 and three relate to RMM 17. If you use Control No. REV 7, you need to clarify which Step applies (e... HEV 7 Step B). 16 17 19 19 Activities 3-6 + Internal Control Matrix Reacy Accessblity: Good to go 1 HI 80% Type here to search O El a X p 66F C 2:50 PM 3/24/2022 P