Why the figures in the balance sheet should not be changed

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Your client, Lewis Dabbs, has written a letter to you. He is concerned because he has just received an offer to purchase his business for $1,000,000 more than the net carrying value of the assets as reported in the most recent financial statements that you had audited. He is not interested in selling the business, but he is now convinced that you have certified financial statements that do not properly reflect the value of his company.

Problem 1: Write a letter to your client explaining why the figures in the balance sheet should not be changed. You may assume your client is an astute businessman with no background in accounting. Use good format, effective organization, and appropriate style. Invent any information you feel is necessary to make your letter complete.

Reference no: EM132936297

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