There are five elements that concern Mr. Youssef, the internal auditor at Modern company:

First: A significant amount of the raw materials inventory of part No. XD6 is still present in books of the (Air Conditioning Devices) division at the end of the 2021 year, Although his part (XD6), was used in manufacturing air conditioners is now considered to be of the first generation and is no longer manufactured as they are very expensive in terms of electricity consumption. Company policy requires a direct write-off of all obsolete inventory items that are no longer used in manufacturing products.

Second: Some accounts receivable are still present in the accounting books as amounts that can be collected at the end of the year 2021, despite the fact that they are more than 180 days old. All accounts receivable are supposed to be collected within a maximum of 40 days as is the norm in the industry. As a result, Yousef believes that many of these accounts are uncollectible. The accounts receivable aging and their collectability status is performed by Mrs. Sama Ismail, the division manager's administrative assistant, instead of the department accountant, contrary to what is used in normal practice

Referring to the two audit observations raised by Mr. Yousef,

you are required to clarify what the financial reporting standards and principles require for each observation. Were these requirements followed or not by the management of the "Air Conditioning Devices" division

so please explain for clarify which accounting principles and standards have been violated.