Problem
During its prior tax year, the client acquired from a third party a license granted by the federal government. The client says that he/she believes that the license has a useful life of 8 years and produces a report, prepared by another firm, supporting that useful life. After looking at the report, it does not look very convincing. Discuss how would it be better to handle this situation keeping in mind any ethical and professional considerations. What are the penalty risks to the client and this own firm if relied on this report?