5 Audit of Property, Plant and Equipmen t(PPE)Case 4ABC Berhad is a small medium sized company which is a talent recruitment agency. Thedirectors of the company have a strong control environment in the company and has an effectiveinternal control. The company has a policy of provided its executives with a company car. Onlynew cars will be purchased and will be replaced within 5 years. Employees are allowed topurchase replaced cars and submit bids to the company. Outside bidders are also invited tosubmit their bids.Required:a. Explain the purpose of a PPE register, describe its contents and state how it should be usedby an entityb.List three assertions of PPE and describe three substantive procedures that you wouldperform when auditing PPE.c.State three objectives of the internal controls that should be exercised over PPEExplain why a strong internal control is important for disposal of replaced carse. Suggest three internal controls that ABC should use over disposal of replaced carsd.

The purpose of maintaining PPE register is to provide all useful information related to all assets…

Required: a. Explain the purpose of a PPE register, describe its contents and state how it should be used by an entity b. List three assertions of PPE and describe three substantive procedures that you would perform when auditing PPE. c. State three objectives of the internal controls that should be exercised over PPE