Your client, Silver, Inc., has a debt agreement with City Bank that includes a number of loan covenants. Violation of any loan covenant results in the entire amount of the debt becoming due immediately. One covenant is: No dividends may be paid in years in which there is a net loss. When there is net income, no more than one-half of the net income may be paid out in dividends. What audit procedure will address whether Silver has met this covenant?

a)	Determine the Companys profitability situation during the planning phase of the audit and test whether any dividends paid have been appropriate.

b)	Determine the Companys profitability situation as of the commencement of year-end fieldwork and test whether any dividends paid have been appropriate.

c)	Determine the Companys profitability situation as of the date of the audit report and test whether any dividends paid have been appropriate.

d)	Any of the above.