Aside from the fact that it is not properly pitched upward, the photo below shows what appears to be an okay flue pipe. A good inspector, however, will look at an item from more than one angle. The other photo below shows what this same flue pipe looks like from the other side where it connects into the furnace flue pipe. In many cases a mirror must be used to view items in tight locations. These holes in the flue pipe can allow flue gases to escape into the living area. The flue gases can contain CO (carbon monoxide) which is a deadly gas.