University antonine

Jad kabalan

Date: March 15, 2006

To: Mr. A
From: Jad Kabalan, Internal audit team
Subject: financial state Issues

I’m writing to inform you that over the past

few weeks there have been some major
issues regarding 3As financial statement
and board of directors.
As the company continues to grow, I feel its
is necessary to address the issues we are
facing, such as re-innovating the warehouse
in Bekaa valley since the case hasn’t been
disclosed in any of our shareholders
meetings.

The company is taking risks by doing closed

doors meetings and not communicating
with any of the managers or executives
which is leading to approvals on some
uncalculated percentages leading to
overrated expenses.
The company has very effective internal
controls, which means every employee
should be signing in and out electronically
in order to avoid time plagiarism.

I’ve noticed that 3A doesn’t have any

insurance requiring its assets and that’s a
risk that may lead to lose one if its buildings
for example which takes us back to the
Bekaa warehouse.

Applying Sarbanes-oxley law will help

protect shareholders, employees and the
public from accounting errors and
fraudulent financial practices accumulating
more trust and less tax problems.

The audit committee should be contacted

at any problem and not the management.

Thank you for your cooperation.