During the audit of an oil and gas company in Salt Lake City, you learn that this audit client is negotiating to sell some of its unproved oil and gas properties to a large investment company. The investment company is an audit client of your Boston office. The oil and gas company acquired these properties several years ago at a cost of $18 million. The company drilled several exploratory wells but found no developable resources. Last year, you (partner in SLC office) and the oil and gas company agreed that the value of these unproved properties had been "impaired" as defined by ASC 932-360-35-11. The company wrote the carrying value of the properties down to an estimated realizable value of $12 million and recognized a $6 million loss. You concurred with this treatment and issued an unqualified opinion on the financial statements. You are now shocked to learn that the sales price for these properties is $42 million. You cannot understand why an investment company would pay such a high price and you wonder what representations the oil and gas company made to the investment company concerning these properties. The management of the oil and gas company declines to discuss the details of the negotiations with you, calling them "quite delicate" and correctly pointing out that the future sale of these properties will not affect the financial statements currently under audit.

What are the arguments for advising your Boston office that the properties are overpriced?

What are the arguments for remaining silent?