Accounting quality is an integral part of HD Faculty™'s business affairs; therefore, from time to time, the Chief Financial Officer is required to ensure that the prevailing account policies employed do not overstate nor understate HD Faculty™s financial performance and position. The Chief Financial Officer is required to ensure that the Internal Auditor(s) accurately disclose all data, where applicable, in respect to:

a.

inventory evaluation methods

b.

fixed assets valuation

c.

goodwill and intangible assets;

treatment of extraordinary items;

e.

revenue recognition;

f.

depreciation policies;

consolidation;

h.

non-consolidation subsidiaries;

i.

>healthcare and pension obligations (method of accounting; funding of pension liabilities; pension plan assumptions, severance indemnities);

j.

undervalued assets, such as last-in-first-out (LIFO) reserve;

k.

>taxation;

l.

off-balance obligations, debt/equity hybrid instruments; and