Case 18-9

Auditing Mesmerizing Marketers

Mesmerizing Marketers (MM) is a marketing company that offers a variety of marketing offerings to its customers, including TV commercial production, app construction, and Facebook page creation. MM accounts for its revenue in accordance with ASC 606,Revenue From Contracts With Customers.

As part of our audit procedures, we need to understand the accounting for an account balance before we begin auditing that balance. Therefore, this case assumes you have read and understood MM's marketing services and the accounting of such services, which are presented in Case 17-7 (available on the Trueblood Case Study Series website). Note that you have been provided with Handout 1, which contains the risks of material misstatement matrix, and Handout 2, which is MM's control matrix.

Question: Design substantive procedures that address the tailored RoMMs identified in Activity 2.