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Procedures

 Inspect the loan agreement for restrictive covenants (terms) and determine the
effect of any loan covenant breaches: allocation, classification, presentation. [If
loan covenants have been breached the loan may become repayable
immediately and should therefore be included as a current liability].

 Inspect the cash book for loan repayments made: existence, accuracy &
valuation.

 For the related finance cost in the statement of profit or loss, recalculate the
interest charge and any interest accrual in accordance with terms within the
loan agreement, to ensure mathematical accuracy: accuracy of finance costs in
the statement of profit or loss, completeness of accruals.

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