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Ben were doing for the Sley Corporations to earn the salaries
that they were paid. Berger did not set the salary structure,
nor did he participate in the setting of salary levels at any
time. Berger also did not participate in the decision to
allocate the officers’ salaries among the Sley Corporations or
among the officers themselves. Berger did not have anything to
do with the decisions to raise and lower the salaries from year
to year.
Berger or those he supervised prepared annual compilation
financial statements for the Sley Corporations for 1980 through
1986. These compilation financial statements were a form of
financial statement whereby the accounting firm takes the least
responsibility for the figures. Berger and those he supervised
took the Sley Corporations’ figures and basically put them into
financial statement format. There was no routine verification of
the Sley Corporations’ figures in the process of preparing
compilation financial statements.
Each compilation financial statement for those years has two
parts, the accountants’ compilation report and the financial
statements. Each accountants’ compilation report for those years
includes the following paragraphs:
A compilation is limited to presenting in the form of
financial statements information that is the representation
of management. We have not audited or reviewed the
accompanying [December 31, 1980, 1981, etc.] financial
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