October 8, 2013 Chrystal A. Delos Santos Internal Audit Supervisor Orjohnwildave Co.

Dear Ms. De los Santos: Good day! This is to inform you that there is inconsistency in dispensing goods in the companys warehouse. I found out that the goods being released are not strictly in line with the policy of the companys first in first out method. Because of this, it will greatly affect the valuing and accounting for inventories. This may lead to deterioration and obsolescence of the units of inventories from the first purchased. In addition, it will affect the procedures to be performed for audit. There will be a discrepancy in the unit cost stated in the inventory list and movement of these inventory items. Our company must have an efficient method for managing inventory. We have to hire a dedicated inventory control specialist. Inventory specialists manage all merchandise items that are on hand and in transit. They also perform adjustments, manage returns, validate received merchandise and implement inventory reporting strategies. They will help us in the supervision and monitoring that inventories we first acquired will be the one to first enter the market. We can also make signs and labels to direct our personnel through our warehouse and help them find the inventory fast and easy to prevent irregularities in following the companys policies. I am looking forward that immediate action will be properly taken in response to this issue.

Very truly yours,

JHON PAULO G. DE PADUA,CPA Junior Accountant