Lina Zhang, CPA, is performing an audit for one of her clients, Le Marche, a coffee chain, for its December 31, 2020, yearend. The audit program requires a substantive analytical procedure to be performed on the reasonableness of Le Marche's interest expense on its long-term debt.

Long-term debt balance confirmed by the bank in prior-year file 12/31/2019$ 620,000

Long-term debt balance confirmed by the bank in the current year 12/31/2020$ 457,530

Interest rate per the bank confirmation4.75%Interest Expense Balance per the general ledger$34,525

Performancemateriality$5,000

Using the information provided by Lina, please perform the following:

a) Assess the reliability of the data provided by Lina. (2 mark)

b) Using the average loan balance, make a working paper calculating the expected interest expense. Compare this to the amount recorded by the client in the general ledger and make a conclusion. Show your calculations (4 marks)

c) Base on the result of this SAP, should Lina perform additional substantive procedures? state your reason. (2 mark)