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SIGNATURE TRACEY R. SCHADEWALD
TITLE CORPORATE SECRETARY
Stavisky, Knittle, Isaacs & Dichek, CPA, PC
342 Madison Avenue
New York, New York 10173-0950
(212) 682-1414
The Shareholders and Board of Directors
of Sterling Capital Corporation
We have examined the financial statements of Sterling Capital
Corporation (the "Corporation") for the year ended December 31,
1996, and have issued our report thereon dated February 20,
1997. As a part of our examination, we made a study and
evaluation of the Corporation's system of internal accounting
control (which includes the procedures for safeguarding
securities) to the extent we considered necessary to evaluate
the system as required by generally accepted auditing standards.
The purpose of our study and evaluation was to determine the
nature, timing, and extent of the auditing procedures necessary
for expressing an opinion on the Corporation's financial
statements. Our study and evaluation was more limited than
would be necessary to express an opinion on the system of
internal accounting control taken as a whole.
The management of the Corporation is responsible for
establishing and maintaining a system of internal accounting
control. In fulfilling this responsibility, estimates and
judgments by management are required to access the expected
benefits and related costs of control procedures. The
objectives of a system are to provide management with
reasonable, but not absolute, assurance that assets are
safeguarded against loss from unauthorized use or disposition
and transactions are executed in accordance with management's
authorization and recorded properly to permit preparation of
financial statements in conformity with generally accepted
accounting principles.
Because of inherent limitations in any system of internal
accounting control, errors or irregularities may occur and may
not be detected. Also, projection of any evaluation of the
system to future periods is subject to the risk that procedures
may become inadequate because of changes in conditions or that
the degree of compliance with the procedures may deteriorate.
Our study and evaluation, made for the limited purpose described
in the first paragraph, would not necessarily disclose all
material weaknesses in the system that may have existed as of
December 31, 1996. Accordingly, we do not express an opinion on
the system of internal accounting control of the Corporation
taken as a whole. However, our study and evaluation disclosed
no condition that we believed to be a material weakness as of
December 31, 1996.
This report is intended solely for the use of management and the
SEC, and should not be used for any other purpose.
Stavisky, Knittle, Isaacs & Dichek, CPA, PC
Certified Public Accountants
New York, New York
February 20, 1997
