it is Principles of Auditing 330-01 class

a. What is the most effective substantive procedure to verify the amount of a Long-Term Debt balance included on the clients year-end trial balance?

b. Why do banks include loan covenants in formal loan agreements with borrowers?

c. At a clients year-end, what is the significance of the company being in violation of one or more loan covenants under its long-term debt agreement?

d. If the client you are auditing is in violation of one or more loan covenants at its year-end, what would you suggest that your client do?