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“Re: Material Omissions on Audits of Federally Insured Loans
Dear Certified Public Accountant:
It has come to our attention, after consulting with other CPAs, and researching the United States Code, the corresponding Code of Federal Regulations, the Uniform Commercial Code, SEC Regulations and certain Federal Reserve Bank Publications that there is good reason to believe some of the audits performed by your firm may have misrepresented the financial conditions of some of your clients because of material omissions concerning Federally insured loans.
In particular, it appears that the Borrower will be relying upon the Lender’s compliance with Federal Laws 12 USCA 1831n (a)(2)(A) and/or 12 CFR 741.6(b) that require the use of Generally Accepted Accounting Principles (GAAP) for Federally-insured loans, and upon the Lender’s compliance with Federal Reserve Policies and Procedures concerning the…
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