MLG & ASSOCIATES New Mansion, Quezon City

AUDIT MEMORANDUM 1. 2. 3. 4. 5. 6. 7. 8. 9. Name of Client TNM STYROPOR INDUSTRIES, INC. Address 1074 EDSA, Cubao, Quezon City Telephone Number (02) 981 8902, (02) 987 7665 Nature of Business Manufacturing Type of Organization Corporation Engagement arranged by Nature of engagement General Audit Period covered Jan 1, 200B - Dec 31, 200B Report to be addressed to Board of Directors of the corporation to the attention of the Chairman, Mr. Thaddeo Garcia 10. Statements to be prepared Index Auditors Independent Report Statement of Managements Responsibilities Comparative Balance Sheet Comparative Statement of Income and Retained Earnings Statement of Cash Flows Comparative Statement of Goods Manufactured and Sold Comparative Manufacturing Overhead Comparative Schedule of Administrative Expenses Explanatory Comments a) Financial Position b) Operating Results Notes to Financial Statements Significant Ratios Nine (9) copies of long form report Six (6) copies of short form report Monthly retainer fee of P5,000.00 plus P25,000.00 yearend fee exclusive of tax and out-of-pocket expenses TYM STYROPOR INDUSTRIES, INC.

11. Number of copies of report 12. Fee arrangement 13. 14. 15. 16. 17. 18. 19. 20. To be billed to Estimated number of days Place of audit Books and records in custody of Starting date Report to be submitted Assigned Partner Assigned Staffs

TYM STYROPOR INDUSTRIES, INC.

Alice Salva Princess Cardenas Mike Valdoz

Queenie Babagonio Pol Magsino 21. Comments

TNM STYROFOR INDUSTRIES, INC. AUDIT MEMORANDUM DECEMBER 31, 200B