Debt Compliance

Short description: Measure to ensure debtors honor their debts

In finance, the term debt compliance describes various legal measures taken to ensure that debtors, whether individuals, businesses, or governments, honor their debts and make an honest effort to repay the money that they owe.

Auditors may issue debt compliance letters stating that they have reviewed the financial covenants of a loan agreement as part of auditing a company's financial statements, and that they are not aware of any matters suggesting that the company is not in compliance with the specific terms of that agreement.^[1]

References

↑ Dickins, Denise; Higgs, Julia L.; Reisch, John T. (September–October 2009). "Understanding the Limitations of Accountants' Reports". Commercial Lending Review 24 (5): 25–48. https://heinonline.org/HOL/P?h=hein.journals/cmlrv24&i=232.

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[1] Dickins, Denise; Higgs, Julia L.; Reisch, John T. (September–October 2009). "Understanding the Limitations of Accountants' Reports". Commercial Lending Review 24 (5): 25–48. https://heinonline.org/HOL/P?h=hein.journals/cmlrv24&i=232.

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