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On March 5th 2010, ABC obtained a $3,200,000 loan from the LBM Bank. The loan will...

On March 5th 2010, ABC obtained a $3,200,000 loan from the LBM Bank. The loan will be used to construct an additional  facility that will be able to produce customer-specific products.

The loan from the LBM Bank calls for interest only repayments until 2014. The loan carries interest at a rate of 5% with principal repayments at a rate of $200,000 per year beginning in 2015.

If you are auditing ABC, what accounts are at risk here and are they at a risk of overstatement or understatement and reason why, relevant assertion and Risk response - Procedure

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