Brian Day, a staff assistant, has been asked to analyse interest and legal expenses as part of the first-year audit of Rosow Manufacturing Limited. In searching for a model to follow, Day looked at other completed working papers in the current audit file and concluded that the closest thing to what he was looking for was a working paper for repairs and maintenance expense account analysis. Following the approach used in analysing repairs and maintenance, all interest and legal expenses in excess of $500 were scheduled and verified by examining supporting documentation.

REQUIRED

a. Evaluate Day's approach to verifying interest and legal expenses.

b. Suggest a better approach to verifying these two account balances.