Covenants are a standard part of every loan agreement. The Bank will require the Company's auditor to verify these compliance calculations. This contract review can be an annual or sometimes quarterly requirement.

How can BDO help you evaluate contracts?

We check compliance convention certificate and supporting documentation. We agree that the conventional certificate has been prepared in accordance with the loan agreement and will subsequently provide the company with a report confirming this fact, which can be submitted to the bank. We can also review projections for future covenants and advise on the appropriateness of accounting policies.

We can provide you:

• Assurance of reported numbers
• Confirmation of future compliance with covenants
• Assistance in negotiations with the bank