Please examine the case of Keystone Computers and Network, found attached below. Review these working papers and then respond to the following questions, addressing each individually in a 3 – 4 page paper that is formatted according to APA.
In the audit plan for the audit of Keystone Computers & Networks, Inc., there is a section on significant accounting and auditing matters. The second matter described involves capitalizing the costs of developing a software program for sale. Answer the following:
- Research this issue and write a brief memorandum for the working papers describing the issue and summarizing the appropriate method of accounting for the development costs.
- Based on your research, describe the major audit issue that you believe will be involved in auditing the software development costs.
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