AUDIT FINDINGS

During the course of the audit of the FingerFoodies' financial statements for th
e months ended June, July, August, September and October 2015, there were a numb
er of issues that came to our attention that need to be reported to you as direc
tors of company.
This report deals with the following areas:
Significant deficiencies in the internal controls and accounting systems
Significant audit risks that have an impact on the audit report
Unadjusted misstatements
Qualitative aspects of the company s accounting practices and financial reporting
Any other matters of governance interest
SIGNIFICANT DEFECIENCES IN THE INTERNAL CONTROL AND ACCOUNTING SYSTEMS
During the course of the audit we identified some areas in which there were sign
ificant deficiencies in the internal controls and accounting systems. We now out
line what those deficiencies were and they are as follows:
Salaraies to be paid to their employees we're given to them at the end of the co
mpany's operation and were not accounted for.
Cash penalties for employees who don't follow their company policy as of their a
ttendance were not accounted for.
One of their company policies is that they will use the money they had collected
from their sales on buying raw materials before depositing it.
There are inconsistencies in the company policy regarding the costing of goods t
o be sold.
Sale of equipment at the end of the company's operation had no documentary evide
nce that it was really sold.
The purpose of the audit was for us as auditors, to express an opinion on the fi
nancial statements.
The audit included consideration of internal controls relevant to the preparatio
n of the financial statements for the purpose of designing relevant audit proced
ures but not for the purposes of expressing an opinion on the effectiveness of i
nternal control and the matters being reported are limited to those deficiencies
that we identified during the audit and that we concluded are of sufficient imp
ortance to merit being reported to those charged with governance.
Please note that the above list of deficiencies is not exhaustive and more defic
iencies may exist in the internal controls and accounting system.
SIGNIFICANT AUDIT RISKS THAT HAVE AN IMPACT ON THE AUDIT REPORT
As discussed during the course of the audit, there are significant concerns over
the going concern of the company due to company s renewal of the its overdraft fa
cility. There are complex, non-routine transactions that occured. Adequate discl
osures have not been made in the notes to the financial statements. We have a du
ty to include a paragraph in the audit report, which will draw attention to note
one, which sets out the details of the uncertainty. This paragraph in the audit
report is for disclosure purposes only and our audit report is not qualified in
this respect.
UNADJUSTED MISSTATEMENTS
During the course of the audit we identified a number of misstatements. We requi
re reasons from you for the non-adjustment of the following misstatements:
The cash control account was not adjusted based on company's policy regarding sa
laries.
Supposed supplies expenses were part of your cost of goods sold.

Supposed supplies expenses were considered as indirect materials.

Salaries incurred were not accounted for.
Cash penalties paid by the employees were not included in the control account an
d were not classified as miscellaneous income.
QUALITATIVE ASPECTS OF THE COMPANY'S ACCOUNTING PRACTICES AND FINANCIAL REPORTIN
G
During the audit we identified a number of issues in relation to the company s acc
ounting practices and financial reporting and particular in relation to the foll
owing items.
The issues are as follows:
Inappropriateness of some of the company's accounting policies
Inappropriateness of the accounting estimates
The potential effect on the financial statements of any material risks and expos
ures
The extent to which the financial statements are affected by any unusual transac
tions
Apparent misstatements in the other information in the document containing the a
udited financial statements or material inconsistencies between it and the finan
cial statements
ANY OTHER MATTERS OF GOVERNANCE INTEREST
We also have identified the following issues