. No further work is required on expenses that had not changed more than 5% as compared to the prior period. For amounts in excess of 5%, explanations were sought from management. Jean-Pierre noted that some expenses had increased due to the poor economy. This explanation is reasonable, so no further work is required. Inquiry of management has tested all relevant assertions. . The bank agreement in the permanent file was reviewed. The line of credit amount is tied to 75% of inventory amounts at year end. As per Ray there are no changes to the bank agreement from the prior period. No further work is required