Sunshine CPA is the auditor for Shumacher Industries, a manufacturer of widgets. Shumacher has debt (a mortgage and a line of credit) to ABC Bank, the same bank that holds its cash, lockbox, and money market accounts. The mortgage has certain covenants that must be complied with at year-end. When the client did an initial analysis of the covenants with its year-end numbers, the debt to equity required ratio, i.e. "debt to equity ratio," was not met. The CFO Schumacher approached the bank and received a covenant waiver from the audit date 12/31/XX for a period of one year.

What audit procedures are needed for Sunshine CPA to test the failure of the covenant?

How should the waiver be dated in this case?

What if the waiver were dated the same date as it was received (12/31/XX year end, dated 02/01/XX)?