Omni Services Ltd., a Canadian public company, is a conglomerate involved in publication of newspapers, media services, and information technology consulting. It recently entered into an agreement to purchase Techno Wizard Limited (T'WL), which operates a printing business in Manitoba. Omni assumed control on 1 November 20X7.

It is now 14 November 20X7 and Omni has just received the 31 October 20X7 financial statements of TWL. Omni is now concerned that the price to be paid is excessive, and is looking for advice leading up to its pre-closing negotiations, scheduled for next week. Accordingly, you have been approached, as an outside accounting advisor, for your advice and expert opinion.

Required:

 Prepare a report that identifies potential issues. Include quantification of issues where possible..