Consulting methodology - J. Samuel Richards

Our consulting methodology, set out on the next page of this letter, complies, in full, with the Statement on Standards for Consulting Services No. 1 ("SSCS 1") issued by the American Institute of CPAs ("AICPA"). The general standards that thus apply to our consulting methodology are:-

Professional competence: We only undertake those professional services that we can reasonably expect to be completed with professional competence;

Due professional care: We exercise due professional care in the performance of our professional services;

Planning and supervision : We adequately plan and supervise the performance of our professional services; and

Sufficient relevant data: We obtain sufficient relevant data to afford a reasonable basis for our conclusions and / or recommendations in relation to any professional services that we perform.

Further our consulting methodology complies with the following additional standards:

Client interest: We serve the client interest by seeking to accomplish the objectives established by the understanding with the client while maintaining integrity and objectivity.

Understanding the client: We establish with the client a written or oral understanding about the responsibilities of the parties and the nature, scope, and limitation of the services to be performed, and modify the understanding if circumstances require a significant change during the engagement; and

Communication with the client: We inform the client of (a) potential conflicts of interest (b) significant reservations concerning the scope or benefits of the engagement, and (c) significant engagement findings or events.

Our consulting process is typically analytical and involves the combination of activities relating to the determination of client objectives, fact-finding, definition of problems or opportunities, evaluation of alternatives, formulation of proposed action, communication of results, implementation, and follow-up.