Anthony G. and Shirley A. Olbres - Page 18

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          that were dated August 31, 1988 (August 31, 1988 unaudited                  
          personal financial statements).  In preparing the foregoing                 
          statements for petitioners, Mr. Olbres gave Mr. Dennett the                 
          figures to include, and Mr. Dennett placed those figures in the             
          proper places and made the necessary calculations.                          
               The unaudited projected business financial statements for              
          Design Consultants for 1986 contained the following caveats:                
               We have compiled the accompanying projected balance                    
               sheet, statements of income, retained earnings, and                    
               changes in financial position of A.G. Olbres Design, as                
               of December 31, 1986, and for the year ending, in                      
               accordance with standards established by the American                  
               Institute of Certified Public Accountants.                             
               The accompanying projection and this report was pre-                   
               pared for the purpose of selling the business and                      
               should not be used for any other purpose.                              
               A compilation is limited to presenting in the form of a                
               projection information that is the representation of                   
               management and does not include evaluation of the                      
               support for the assumptions underlying the projection.                 
               We have not examined the projection and, accordingly do                
               not express an opinion or any other form of assurance                  
               on the accompanying or assumptions. * * * We have no                   
               responsibility to update this report for events and                    
               circumstances occurring after the date of this report.                 
               Virtually identical caveats except for the second paragraph            
          quoted above appeared in a letter addressed to Anthony G. Olbres            
          DBA White Star Design, Inc., that was part of the unaudited                 
          projected business financial statements for White Star for 1988.            
          The unaudited projected financial statements for Design Consul-             
          tants for 1986 reflected projected gross receipts in an amount              
          that is almost twice as large as the gross receipts for Design              





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