1. The audit found that the company had set and the policy account in calculating the cost of goods to the value of inventories
at year-end using the first in first out, but upon examination found that the company did not. Accounting policies defined by
the Company due to lack of adequate systems of internal control and management products such factors shows the company.
Data show that, contrary to the material facts in the accounting policy to be inappropriate. As a result, the Company is unable
to conclude that the present value of the cost of inventories and the value of inventories is appropriate or not.