Your firm is the external auditor of Downe Ltd (Downe). It has accepted a non-audit engagement to review and report on the internal controls over sales, purchases and cash at Downe. Downe operates a chain of sandwich shops and has a head office. The following internal control deficiencies were identified during the engagement: (1) Managers at the shops regularly used cash from the cash register to pay local suppliers for ad hoc purchases. On several occasions the managers did not adhere to company policy to record the purchase on an expense form and then put the form in the cash register.