You work for an audit firm QR Partners, and you have been assigned to perform a range of tasks relating to the audit of one of the firm's clients - Shonky Ltd. (a) Describe how you would verify Shonky Ltd's ownership of freehold land and buildings, computers and motor vehicles. Your answers must be specific for each class of assets. (3 marks) (b) Explain how you would determine that the depreciation rate on the various classes of assets was adequate. (3 marks) (c) During the financial year just completed, Shonky Ltd disposed of an item of plant for $250,000, recording a profit on disposal of $75,000 in the process. The $75,000 profit on disposal of the plant was subsequently recognised in Shonky Ltd's Income Statement. Shonky Ltd's total Net Profit for the year was $65,000. After making some initial inquiries you realise that this is the first time Shonky Ltd had disposed of an item of plant in this manner in recent memory. The company's normal practice hast been to depreciate plant and equipment to $0 and then sell as scrap to a local not-for-profit recycling business. Required: (i) Outline the steps you would take as an auditor to verify the legitimacy of this transaction. (ii) List Two causes for concern in relation to the above transaction. (4 marks) (2 marks)