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Spot check the original amount of unearned discount on the loan against supporting documents and recalculate unearned discount. Compute yields on various categories of loans in comparative prior periods and explain any variances. Unearned discount. For those banks that write their loans at a discount the following procedures should be considered Prepare or obtain a summary of unearned discount and reconcile totals with the general ledger control accounts. Inspection of notes Inspect notes...
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