auditing: please answer each question clearly. don't copy from past chegg question.

1) prepare a workpaper using substantive analytical precedures to test the reasonableness of interest expense 2) tesla in 2020 income statement shows $1,183.000 of interest expense. To conduct a substantive layical procedure on this account, the auditor could develop an expectation using reasonableness analysis by building a model in the following manner Obtain the ending monthly balance for the short term line of credit from the monthly lose statement and calculate the average monthly ending balance Trace the monthy loan balances to the neige previously calculated by the average interest rate and compare to the result to the recorded interest expenses From the monthly loan statement and traced to the General ledger in thousands) lan $ 41,500 feb S 38,600 mar $ 28,100 $ 27,900 May $ 26,100 lun S 25,500 NI S 24,200 Aug $ 30,200 Sep $ 44,500 Oct S 38,100 NOV $ 25,200 Dec S 31,00 Total $ , 13 14. From the monthly loan statement and traced to the General ledger 15 (in thousands) 16 Jan S 41,500 17 feb $ 38,600 18. mar $ 28,100 19 Apr $ 27,900 20 May $ 26,100 21 Jun $ 25,500 22 Jul S 24,200 23 Aug $ 30,200 24 Sep $ 44,500 25 Oct S 38,100 26 Nov $ 25,200 27 Dec $ 31,000 28 Total $ 380,900 BO 31 32 Calculate the average 33 assume that the interest rates recordedd on the loan statements have remained stable over the year, 34 flucuating between 4 and 5.25. If the auditor uses 4.875% as the ave interest rate. 35 36 Be sure to develop your expectation 37 Assume 5% of recorded balance is the tolerable difference. 38 Is the difference of the expectation and recorded amount acceptible or do you need to do more work? What is your conclusion 39 29