Management projected tremendous sales and profits with insufficient <s> accounting procedures in place.
We did not observe the physical inventory in 1998 stated in the accompanying financial statements at $444,983. The Company's records do not permit the application of other auditing procedures to inventories. In addition, the
Company does not maintain certain customary accounting records and supporting
documents relating to transactions with suppliers and customers, nor, in our opinion, is the system of internal control adequate to provide safeguards of
assets and to assure proper recording of transactions. Accordingly, it was
impracticable to extend our procedures sufficiently to determine the extent
to which the financial statements may have been affected by these conditions.
Since inventory at December 31, 1998 enters significantly into the
determination of financial position, results of operations, and cash flows,
and since the Company does not maintain certain customary accounting records or documents, or an adequate system of internal control, as described in the preceding paragraph, the scope of our work was not sufficient to enable us to
express an opinion, and we do not express an opinion on the financial statements referred to above.
As discussed in Note 3, the Company has numerous related party transactions
and is dependent upon a related party supplier for its phytogenics products.
In addition, as discussed in Note 1, the Company is dependent on its ability
to continue to operate within United States Government guidelines for
nutritional supplements |
