Debt covenant? =
1. Company ABC is your firm’s audit client. By the end of 2016,
ABC had only two outstanding 7-year bank loans, $100 million from
Bank of America and $150 million from Banc of California. When your
firm audits its FY2017 accounting books, there is $140 million of
loan outstanding from Banc of California. As an auditor, do you
still need to send loan confirmation to Bank of America? Why or why
not?
2. For bank loan (or...