- 13 - C.P.A. with William and Ribbs (W&R), a C.P.A. firm in Long Beach, California. She was an independent contractor with W&R. She had her own clients and shared clients with the firm. She specialized in restaurant clients because she had owned a number of national franchises such as El Pollo Loco, Sizzler and, at the time of trial, IHOP. She became involved with DAK, Inc. in March 1995, when Dr. Shlens, the owner of the premises on which Moonshadows operated, retained her services to analyze the sales revenues. Ms. Groom was aware that, in 1991, Dr. Shlens entered into a lease with Marvin Kelson who was then the principal of DAK, Inc., to operate the restaurant for a period of 15 years. The lease provided that petitioner would pay a minimum rent of $120,000 per year. The lease also required the payment of a percentage rent of 7-1/2 percent of annual gross sales in excess of the minimum annual rental amount of $120,000. Ms. Groom started her audit in April or May of 1995. The audit was mainly conducted on the premises of the restaurant. Before beginning her audit, Ms. Groom visited the restaurant as a patron on a number of occasions to observe the restaurant’s operations. When she first began her audit, Ms. Groom met with Marvin Kelson, the restaurant’s accountant and bookkeeper who formerly owned the restaurant. Mr. Kelson explained to Ms. Groom how the restaurant recorded its daily sales.Page: Previous 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Next
Last modified: May 25, 2011