3 20 pts You are working on the audit of a chain of coffee shops, Eezy Coffee Ltd and have been asked to draft the management letter. So far the following control deficiencies have been identified; Shop managers regularly use cash from the till to pay for incidental supplies and record keeping for this is poor Due to the extended opening hours of each shop, cashing up is usually done by the last remaining member of staff on site regardless of seniority Cashing up sheet are forwarded to head office electronically and an inspection showed that none were evidenced as having being reviewed Staff in the cafes were too busy dealing with customers to check deliveries that came direct from suppliers often signing for them without opening any boxes to check the contents agreed to the accompanying despatch note On three separate occasions, caf managers were found to have paid cash to casual workers recruited when managers were left short staffed An exception report is generated at head office each time that one or more employees remains logged in to the till system in each at the end of the day. This report shows no evidence of ever having been reviewed. Required: 1. Compare and contrast the purpose of the letter to management and the written representations required from management (4 Marks) 2. Draft a management letter to the client giving details of the internal control deficiencies identified, analysing possible consequences and suggesting recommended improvements 3. Analyse the impact the discovery of these control deficiencies will have on the approach to sampling (10 Marks) (4 Marks) 4. Analyse the impact the discovery of these control deficiencies will have on the approach to analytical procedures surrounding inventory including at least two examples of such procedures (2 Marks) (Total 20 Marks)