Question: In the audit plan for the audit of Keystone Computers & Networks, Inc., on page 241 there is a section on significant accounting and auditing

In the audit plan for the audit of Keystone Computers & Networks, Inc., on page 241 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.
a. 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.
b. 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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a KEYSTONE COMPUTERS NETWORKS INC December 31 20X5 Memorandum on Accounting Issues x Accounting for Extended Warranties In 20X4 KCN began developing n... View full answer

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