Intermediate
Covenant compliance test and waiver evidence checklist
Calculates covenant metrics, flags breaches, and drafts an evidence checklist for waivers/amendments. Helpful for both audit teams and finance teams under tight deadlines.
Test debt covenant compliance for {entity_name} as of {period_end_date}.
Inputs:
- Debt agreements summary: {debt_agreements}
- Financial statements / trial balance: {financials}
- Covenant definitions (EBITDA, leverage, etc.): {covenant_definitions}
- Calculated adjustments permitted: {permitted_adjustments}
- Any waiver/amendment documents: {waiver_docs}
Output:
1) Covenant calculation table with definitions and adjustments.
2) Compliance conclusion and any potential breaches.
3) If breach: required actions and audit implications (classification, disclosure).
4) Evidence checklist for waivers (timing, authorized signers, terms, effective date).
Be precise about definitions and avoid unsupported add-backs.Related Prompts
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