You are an audit manager in Rose 3:. Co, responsible for the audit of Cooper Ltd. You are reviewing the audit worldng papers relaiing to the financial year ended 31 January 2014. Cooper Ltd is a manufacturer of chemicals used in the agricultural industry. The draft nancial statements recognise prot for the year to 31 January 201:5r of $15 million {2013 $20 million) and total assets of $240 million [2013 $230 million}. The audit senior, Mair Turner, has brought several matters to your attention: Cooper Ltd's factories are recognised within property, plant and equipment at a carrying value of $00 million. Half of the factories produce a chemical which is used in farm animal feed. Recently the govemmeut has introduced a regulation stipulating that the chemical is phased out over the next three years. Sales of the chemical are still buoyant, however, and are projected to account for 45% of Cooper Ltd's revenue for the year ending 31 January 2015. Cooper Ltd has started to research a replacement chemical which is allowed under the new regulation, and has spent $1 million on a feasibility study into the development of this chemical. In October 2013, Cooper Ltd's finance director, Hannah Dsbourne, purchased a car from the company. The carrying value of the car at the date of its disposal to Hannah was $50,000, and HE market value was $5,000. Cooper Ltd raised an invoice for $50,000 in respect of the disposal, which is still outstanding for payment. Required: Comment on the matters to be considered and explain the audit evidence you should expect to find during your review of the audit working papers in respect of each of the issues described above