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

No. 4, the bundle price of $1.5 million does not reflect the standalone price of the TV commercial, the app, nor the Facebook page, and all the services are distinct from each other, it should be accounted as a contract modification.

RoMMs No. 5 states that the fixed consideration identified in the transaction price of the contract is identified at the incorrect amount or does not meet the definition of fixed consideration. Regarding the case, there is a bundled option that includes all three products, a TV commercial, an app, and a Facebook page for a price of $1.5 million, which $250 thousand less than the total standalone price of all products. As a result, it's possible that the company recorded an incorrect amount of the contract's consideration.

RoMMs No. 7 declares that the variable consideration is not correctly identified in the contract. The variable consideration usually arises because of discounts, rebates, or refunds. In this case, when a customer decided to purchase the bundle option, which includes all three products, there is a discount of $250 thousand, and MM supposed to record the $250 thousand discount. It's possible that MM records the $1.5 million consideration only without the $250 thousand discount, which creates a material misstatement and affects the financial statement.