The BarZ Company is a public company, and BarZ has implemented FASB Accounting Standards ASU 2014-09, Revenue from Contracts with Customers, for its calendar year end December 31, 2018. BarZ's auditors have informed the audit committee of BarZ that revenue recognition would be considered a Critical Audit Matter (CAM) under the PCAOB standard.As such, the auditors have proposed the following language in their CAM section of the audit report:

Critical Audit Matters

The critical audit matters communicated below are matters arising from the current-period audit of the financial statements that were communicated or required to be communicated to the Company's Audit Committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

Revenue Recognition Footnote 1 to the Financial Statements

The Company recognizes revenue upon transfer of control of promised products or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. The Company offers customers the ability to acquire multiple licenses of software products and services, including cloud-based services, in its customer agreements through its volume licensing programs.

Significant judgment is exercised by the Company in determining revenue recognition for these customer agreements, and includes the following:

• Determination of whether products and services are considered distinct performance obligations that should be accounted for separately versus together, such as software licenses and related services that are sold with cloud-based services.
• Determination of stand-alone selling prices for each distinct performance obligation and for products and services that are not sold separately.
• The pattern of delivery for each distinct performance obligation.
• Estimation of variable consideration when determining the amount of revenue to recognize
• Given these factors, the related audit effort in evaluating management's judgments in determining revenue recognition for these customer agreements was extensive and required a high degree of auditor judgment.

Required: The CAM (Critical Audit Matters) requires the auditor to address the principal audit procedures the firm performed to address the revenue recognition matters above (How the Critical Audit Matter Was Addressed in the Audit). Without writing the paragraph, briefly describe the audit steps the CPA firm may make to address the revenue recognition issue noted in the paragraph above. It may be useful to refer to the Journal of Accountancy article from October 2019 on CAMs sent in our last class as a guide.