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Technology Stocks : IFMX - Investment Discussion -- Ignore unavailable to you. Want to Upgrade?

To: Katz R Us who wrote (10798)	5/15/1998 5:03:00 AM
From: Daniel Ricigliano	Read Replies (1) \| Respond to of 14631

Accountant's opinion letter accompanies the audited financial statements of IFMX, FYI

To: Katz R Us who wrote (10798)	5/15/1998 6:30:00 PM
From: Robert Graham	Respond to of 14631

Good, disagreement is generally a good thing here. Now, let me see if I understand you clearly. I think you are essentially making four related statements that I want to validate with you. First, you made the statement that it is not unusual for companies to change independant auditors. Second, you are saying this is normal and most of the time does not mean anything when it happens. Third, you are saying that when a company does change auditors, it can be for the simple reason that they have found a more inexpensive auditor someplace else. Fourth, after a dismissal of an auditor, you are saying it would be highly unusual for a letter to be released by the auditing firm indicating that the dismissal is not over the application of GAAP accounting practices? Now since this case involves a lawsuit over those same issues, I would agree with you. However, if the company moved to a different auditing firm due to an unrelated reason like cost, in your opinion would this case make it different where the auditing firm would be willing to submit such a letter? Am I understanding you correctly here? Do you find it odd that they continued using the independant auditing company after their efforts in previous audits became suspect and after they were named in the lawsuite by Informix management? Or in your opinion is this also a normal practice? The press release about their termination of the auditing company came out only recently, May 1998. The original auditors were used at least up to the 4Q 1997 financials from what I can verify and probably used for 1Q 1998. Bob Graham