Reference no: EM132480834
Question 1A. On the basis of the contract between Trans Ocean and Heavy, what is the risk of material misstatement (RoMM) that we may identify as part of our audit to address the valuation and allocation of the right-of-use (ROU) asset and lease liability, in determining the appropriate lease term in the lease contract?
Question 1B. Considering the "Additional Facts" of the case, what additional RoMMs may we identify as part of our audit to address the completeness of identifying all events or circumstances that would require a reassessment of the lease term, the remeasurement of the ROU asset and lease liability, or both, to reflect the reassessment event?
Handout 1, the RoMMs matrix, may be used to assist with identifying the relevant RoMMs.
Question 2. Identify internal controls that address the RoMMs identified in Activity 1. Handout 2, Trans Ocean's internal control matrix, may be used to assist with identifying relevant internal controls.
Question 3. Design substantive procedures that address the RoMMs identified
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