Qualitative Characteristics

I am contacting in order to inform you of my concerns regarding the coming acquisition of the factory in town.

As you know, I, along with the other members of the accounting staff, have been receiving boxes of all the sales data from this company in order to assess the purchase offer price. As a staff accountant, I am obligated to investigate any abnormalities or inconsistencies regarding the financial aspects of this company. During this process I have discovered a few irregularities that may very well be a legitimate cause for concern.

While looking through some documentation, I noticed that there is a multitude of missing sales documents. In addition to this, the sales documents that are present seem to be incomplete in regards to sales data and quantity. These findings lead me to believe that this company is not providing a faithful representation of their finances. The omission of certain documents clearly shows the lack of neutrality within the accounting department. The missing information is extremely relevant in identifying both the actual financial standing of the company, as well as its predictable future value.

Due to failing to disclose proper information, I have determined that these financial records lack competency, relevance, and sufficiency. That being said, it is very difficult to verify the fiscal position of the company, though it is probable that it is less favorable than they are leading us to believe. Because of these issues that I have pointed out, I believe it would be highly advantageous for you to reconsider this acquisition in its entirety.

Thank you for taking the time to review my thoughts and views considering this acquisition; if you have any questions or concerns please feel free to contact me.

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