(12 marks) Question 5 YOU ARE REQUIRED TO: 1. Comment briefly on the following concerning the Finance and Investment cycle: i. Frequency of transactions; ii. Size [materiality] of transactions; iii. Intemal controls relating to transactions: Iv. Legal and regulatory requirements; and v. Documentation. [5] 2. Why is it possible that a significant property, plant and equipment figure on the balance sheet can be regarded as having only low/medium audit risk? (5) 3. Comment on how the factors listed below would affect your evaluation of the risk of material. misstatement in the financial statements of Chadwick (Pty) Ltd and discuss your firm's overall response to that. (2) - Chadwick [pty] L.td concluded several material transactions in the finance and investment cycle in the year under audit. - Management of Chadwick (Pty) Utt, including thase in the accountlng department, lacked knowledge and an approprlate understanding of the complexities of the financial regorting standards relating to these transactions