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Insight RFP Response <br /> Cobb County, Georgia insight., <br /> Technology ProductSolutions • Related Services <br /> revenue based on the consideration received in a contract with a client,and excludes any sales <br /> incentives and amounts collected on behalf of third parties.The Company offers hardware and <br /> software products, as well as services. Given the number of product and service offerings, <br /> significant judgment is exercised by the Company in recognizing revenue, including the following <br /> decisions: <br /> • Determining the point in time when a customer takes control of hardware. <br /> ■ Determining the point in time when the customer acquires or renews the right to use <br /> or copy software under license and control t-ansfers to the customer. <br /> • Evaluating the Company as either a principal or an agent for hardware and software <br /> products and services,and the related recognition of revenue from the customer on a <br /> gross or a net basis_ <br /> • Determining an appropriate pattern of revenue recognition for service performance <br /> obligations. <br /> We identified the evaluation of revenue recognition as a critical audit matter because the audit <br /> effort to evaluate the Company's revenue recognition judgments,including those noted above, <br /> was extensive and required a high degree of auditor judgment. <br /> The following are the primary procedures we performed to address this critical audit matter. We <br /> evaluated the design and tested the operating effectiveness of certain internal controls over the <br /> revenue recognition process, including corrrols related to the timing and pattern of revenue <br /> recognition and gross versus net revenue recognition.As part of testing the Company's internal <br /> controls, we also involved information technology(IT) professionals with specialized skills and <br /> knowledge,who assisted in testing of general IT controls over significant systems and the <br /> evaluation of system interface controls and automated controls designed to determine the <br /> existence,accuracy, and completeness of revenue. We evaluated the Company's significant <br /> accounting policies related to its product and service offerings by reviewing the terms of certain <br /> vendor and customer contracts and comparing the policies to the revenue recognition standard. <br /> we selected a sample of revenue transactions and performed the following for each selection: <br /> Obtained evidence of a contract with the customer. <br /> • Compared the amounts recognized and timing of revenue recognition to underlying <br /> documentation, including purchase orders, shipping documentation,and evidence of <br /> rnyrn,nnt,if nrnlimhle. <br /> • Evaluated the Company's application of their accounting policies to determine the <br /> timing and amount cf revenue to be recognized. <br /> Tested the presentation of revenue as gross or net by comparing the Company's gross <br /> or net presentation to the attributes of the underlying vendor support and the <br /> Company's accounting policy. <br /> Js{KPMG LLF <br /> We have served as the Company's auditor since 1990. <br /> Phoenix,Arizona <br /> February 18,2022 <br /> 4cf <br /> 10/13/2022 Request for Proposal Response#23-6692 Page 29 <br />