hard20 pts · first answer countsanalytical-procedures

Interest expense reasonableness test

Average borrowings for the year were ₹5,00,00,000 at an average rate of 9%. Recorded interest expense is ₹52,00,000. The threshold for investigating differences is ₹5,00,000. What should the auditor conclude?

A.Difference ₹7,00,000; within threshold, no further workB.Difference ₹52,00,000; disclaim an opinionC.Difference ₹7,00,000; above threshold, so investigate causes such as new loans, rate changes or misclassified chargesD.Difference ₹45,00,000; adjust the expense

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Interest expense reasonableness test

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