Kindly answer the following question in the picture.

Question 4 (4 points) Saved Fixed Assets and Risk of Misstatement Zephyr Inc. You are an auditor and you have recently examined the Fixed Asset continuing schedule of Zephyr Inc. The company reports under the IFRS framework. You have made the following notes to yourself based on your investigation: 1. All fixed assets listed on the continuity schedule are in regular, productive use in Zephyr. 2. Most additions to fixed assets and most disposals of fixed assets were properly recorded on the continuity schedule, while two instances were found where these amounts were expensed in the fiscal year in which they were paid. 3. Payments made for work performed on all fixed assets for the purpose of keeping the assets operating at their intended use and life were recorded in the "Repairs and Maintenance" accounts. 4. Payments made for work performed on all fixed assets for the purpose of extending the life or expanding the capacity of the assets were capitalized and thereby recorded as addition to the fixed asset accounts. 5. Upon purchase of all fixed assets, the installation and freight costs that were usedge 1: 4. Payments made for work performed on all fixed assets for the purpose of extending the life or expanding the capacity of the assets were capitalized and thereby recorded as addition to the fixed asset accounts. ge 2: 5. Upon purchase of all fixed assets, the installation and freight costs that were used to bring the asset to its state of intended use were expensed in the fiscal year in which they were paid. 6. Upon acquisition, all Leases for major equipment at Zephyr were recorded as a ge 3: Capital Lease and therefore a fixed asset was established in Zephyr's accounts. REQUIRED: hs [A] Identify two instances where incorrect application of financial reporting ge 4: framework was violating, leading to the risk of misstatement in Zephyr's financial statements. [B] For the two instance in part [A], briefly explain WHAT would cause a misstatement. ge 5: Paragraph BIU