|Date:||September 23, 2015|
|Length:||2 / 537|
|No of views:||0|
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Additional detailed testing will only be performed if analytical procedures suggest interest income is materially misstated. A misstatement of $525,000 is considered material.
The audit team developed an expectation for loan interest income using the average loan volume multiplied by the weighted average interest rate...
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By using this analytical procedure we were able to develop that 2004 and 2005 interest income analytics were immaterial. However, changes in real estate and agricultural industries indicate that people are not paying back loans. This has an affect on interest income. Therefore we had to do further research...
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