Dak, Inc. - Page 13

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          tapes that he examined for periods outside the applicable period,           
          established the double-ups theory proposed by petitioner, and Mr.           
          Ozenne agreed--absolutely.                                                  
               Mr. Chiate further inquired of Mr. Ozenne:                             
                    Q.  Okay.  So in addition to the actual dinner                    
               checks for the period immediately after the fiscal year                
               (the applicable period) did you determine that that was                
               also true for the months immediately preceding the year                
               in question?                                                           
                    A.  Yes.                                                          
                    Q.  Okay.  And did that support your opinion as to                
               the reasonableness of concluding that double-ups                       
               account for the claimed deficiency of $120,000.                        
                    A.  For the lion’s share of it.  As I said                        
               earlier, the gift certificates and the comps would have                
               accounted for a very small part of that.  And I think                  
               the real proof of that is Ms. Groom came out and                       
               finished, I believe in May, the first part of May of                   
               1995, and the questions that arose as to the accuracy                  
               of her schedule.                                                       
                    Well, shortly after those questions arose, the                    
               bookkeeper at the restaurant instituted a procedure                    
               whereby they reconciled the total of the two adding                    
               machine tapes to the daily tickets on a daily basis.                   
                    Now that was not available in our year under                      
               audit, or prior, because no one thought it was                         
               important. [Emphasis added.]                                           

          Testimony of Cecy Groom                                                     
               Ms. Groom is a C.P.A. who has a bachelor’s degree in                   
          business administration.  She majored in accounting.  At the time           
          of trial she was a business owner, managing and operating an                
          International House of Pancakes (IHOP) and was also an affiliate            

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