Question
You are a partner in the Denver office of a national public accounting firm. During the audit of Mountain Resources, you learn that this audit
You are a partner in the Denver office of a national public accounting firm. During the audit of Mountain Resources, you learn that this audit client is negotiating to sell some of its unproved oil and gas properties to SuperFund, a large investment company. SuperFund is an audit client of your New York office.
Mountain Resources acquired these properties several years ago at a cost of $15 million. The company drilled several exploratory wells but found no developable resources. Last year, you and Mountain Resources agreed that the value of these unproved properties had been
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