The purpose of this memorandum is to document the procedures and requirements for Audit case 2: Computone Corporation. This case was adapted from article “Computone Corporation: An Instructional Case in Earnings Management and Revenue Recognition” by H. Lynn Stallworth and Robert L. Braun. The American Accounting Association holds the copyright to the case, but extends duplication permission for use in courses of instruction. All other uses are prohibited without the explicit permission of AAA.
You will find all the background information required within this memo, however, you will need to reference external materials regarding auditing standards, SEC staff bulletins and the Sarbanes-Oxley Act of 2002 (no links are provided, you must obtain them yourselves). The final product of this case will be a memorandum addressing your answers to the questions found herein. The memo should be in a concise and clear format, explaining not only your conclusions but also how you reached those conclusions.

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