PART B: This section has two question:, Answer all the questions, QUESTION 3 ( 14 Marks) The term property, plant and equipment (PIPE) indudes all tangible assets with a service life of more than one year that are used in the cperation of the business and are not acquired for the purpose of resale. PPE is often the largest item on a balance sheet. During an audit engagement for Esplanade Berhad, you have found the following data: 1 On 1 February 202), Esplanade Berhad replaced 10 of its heary-duty vehicles. 2. The old vehides hid a carrying amount of RM1.8 million, as recorded in the non-current assets register and were given in part-exchange against new vehides costing RM4.6 million. 3. Cash consideration of RM3.9 million was also paid. Required: a) Esplanade Berhad's PPE portfolio is also exposed into several inherent risks. Discuss THREE (3) factors in assessing the inherent risk that you should consider during auditing their PPE section. (6 marks) b) Based on the situztion above, describe FOUR (4) substantive procedures the auditor should perform to cbtain sufficient and appropriate audit evidence in relation to Esplanade Berhad's vehicle additions and disposals. (8 marks) PART B: This section has two question:, Answer all the questions, QUESTION 3 ( 14 Marks) The term property, plant and equipment (PIPE) indudes all tangible assets with a service life of more than one year that are used in the cperation of the business and are not acquired for the purpose of resale. PPE is often the largest item on a balance sheet. During an audit engagement for Esplanade Berhad, you have found the following data: 1 On 1 February 202), Esplanade Berhad replaced 10 of its heary-duty vehicles. 2. The old vehides hid a carrying amount of RM1.8 million, as recorded in the non-current assets register and were given in part-exchange against new vehides costing RM4.6 million. 3. Cash consideration of RM3.9 million was also paid. Required: a) Esplanade Berhad's PPE portfolio is also exposed into several inherent risks. Discuss THREE (3) factors in assessing the inherent risk that you should consider during auditing their PPE section. (6 marks) b) Based on the situztion above, describe FOUR (4) substantive procedures the auditor should perform to cbtain sufficient and appropriate audit evidence in relation to Esplanade Berhad's vehicle additions and disposals. (8 marks)