The CFO of Logistical Logistics recognizes that the new leasing standard contains certain provisions that may affect how the Company treats contracts of this nature. Note that you have been provided with Handout 1, which contains the risks of material misstatement (ROMMs) matrix, and Handout 2, which is Logistical Logistics' control matrix. Required Activities: 1. On the basis of the facts related to the contracts between the Company and its vendors, what are the RoMMs that we may identify as part of our audit to address the completeness and existence of those contracts that are or contain a lease? Handout 1, the RoMMs matrix, may be used to assist with identifying relevant RoMMs. 2. Tailoring RoMMs to the specific lease contracts and assertions is an important step in designing an audit plan for leases. Now that you have identified the RoMMs that are applicable to the contracts between the Company and its vendors, how might you tailor the RoMMs that you identified in Activity 1 to the facts presented in this case? 3. Identify internal controls that address the tailored RoMMs identified in Activity 2. Handout 2, Logistical Logistics internal control matrix, may be used to assist with identifying relevant internal controls. 4. Design substantive procedures that address the tailored RoMMs identified in Activity 2.