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Is the following statement true or false? In order to ensure compliance with the restrictive clauses of different loan agreements, the auditor plans to verify
Is the following statement true or false? In order to ensure compliance with the restrictive clauses of different loan agreements, the auditor plans to verify the companys working capital ratio and its debt/equity ratio every month. These are the only two ratios to which restrictive clauses apply under the loan agreement. Therefore it makes sense that it is sufficient for the auditor to rely on the procedures of having the ratios calculated every month.
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