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SIGNATURE JACQUELINE L. PICKEN
TITLE CORPORATE SECRETARY
TIMPSON GARCIA
CERTIFIED PUBLIC ACCOUNTANTS
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL
To the Shareholders and Board of Directors
Investors Research Fund, Inc.
In planning and performing our audit of the financial statements of
Investors Research Fund, Inc. for the year ended September 30, 1998, we
considered its internal control, including control activities for safe-
guarding securities, in order to determine our auditing procedures for
the purpose of expressing our opinion on the financial statements and
to comply with the requirements of Form N-SAR, not to provide assurance
on internal control.
The management of Investors Research Fund, Inc. is responsible for
establishing and maintaining internal control. In fulfilling this
responsibility, estimates and judgments by management are required to
assess the expected benefits and related costs of controls. Generally,
controls that are relevant to an audit pertain to the entity's objec-
tive of preparing financial statements for external purposes that are
fairly presented in conformity with generally accepted accounting
principles. Those controls include the safeguarding of assets against
unauthorized acquisition, use, or disposition.
Because of inherent limitations in internal control, errors or fraud
may occur and not be detected. Also, projection of any evaluation
of internal control to future periods is subject to the risk that it
may become inadequate because of changes in conditions or that the
effectiveness of the design and operation may deteriorate.
Our consideration of internal control would not necessarily disclose
all matters in internal control that might be material weaknesses
under standards established by the American Institute of Certified
Public Accountants. A material weakness is a condition in which the
design or operation of one or more of the internal control components
does not reduce to a relatively low level the risk that misstatements
caused by errors or fraud in amounts that would be material in rela-
tion to the financial statements being audited may occur and not be
detected within a timely period by employees in the normal course of
performing their assigned functions. However, we noted no matters
involving internal control and its operations, including controls over
safeguarding securities, that we consider to be material weaknesses as
defined above as of September 30, 1998.
This report is intended solely for the information and use of manage-
ment, the Board of Directors of Investors Research Fund, Inc., and the
Securities and Exchange Commission.
Timpson Garcia
Oakland California
October 16, 1998
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