Which of the following is not an inherent risk typically associated with debt covenant compliance issues?
A)Whether debt covenants are calculated accurately.
B)Whether debt payment transactions are properly initiated.
C)Whether compliance with debt covenants is appropriately disclosed.
D)Whether compliance with debt covenants is appropriately reviewed.

Question

Quizplus · Accepted Answer

The risk of whether debt payment transactions are properly initiated is not an inherent risk typically associated with debt covenant compliance issues. While it could potentially lead to a breach of a debt covenant if payments are missed, it is not directly related to the compliance aspect of the covenant. A, C, and D are all inherent risks associated with debt covenant compliance issues.

Which of the Following Is Not an Inherent Risk Typically