13 A kent Xfx Select Procedure(s) C D December 31, 20x7 E G Use Drop-down in cells below $ 48,250 E List of Auditing Procedures M A Agree beginning balance to previous year's audit workpapers 1 Current Portion of Long Term Debt 2 Note Payable (non-current portion) 180,351 Total Long-Term Debt 5 228,601 CES B Foot cross-foot to ensure mathematical accuracy, 12/31/X6 Principal Balance Additions Payments 12/30 Balance C Agree to confirmation sent to lender. Nota Payable $273,450 (44,049) 5 228,601 Select Procedure D Agree to General Ledger balances (5:15% annual rate, 60 m) E Compare to amortization schedule principal payments to verify correct 4 Client interest Expence for year ended 12/31/X7 $ 12,700 Se Perform analytical procedure, interest is deemed reasonable based on outcome of procedure 3 4 5 Instruction 17 tama 1 through 4 represent the items that an auditor ordinarily would find on a client-prepared debt analysis. The accompanying "List of auditing procedures represents substantive auditing procedures. For each item above, select tjone or more procedures, as indicated, that the auditor most likely would perform to gather evidence in support of 20 that item. The procedures on the list may be selected once, more than once, or not Use the drop-down list in 21 column G to select the procedure(s) 22 23 For the Interest Expense, complete the analytical procedure on the right 24 1)Show your calculation for the estimated interest expense amour 252) Show your calculation for the acceptable range (use +/-5) 263) Compare the client's amount to the acceptable: 27 range) 204) Determine if the client's interest expense is reasona 20 F G Agree ending balance to amortization schedule H Performed analytical procedure, interest is NOT deemed reasonable based on outcome of procedure LUKES GENERAL STORE Interest Expense Analytical Procedure Client's beginning balance of note payable Client's ending balance of note payable Average balance $278,450 228,601 251,026 Yes (within the range) or No (not within the 1) Calculate auditors estimated interest expense 2) Calculate auditors estimated acceptable range 3) Compare to client's interest expense of $ 12,700 Interest expense within the acceptable estimated range? and select Yes or Not 30 01 32 35 34