List any audit steps or reporting requirements you think should be taken or recognized in connection with each one of the following:A sinking fund shall be deposited with the trustee by semiannual payments of $400,000, from which the trustee shall, in his or her discretion, purchase bonds of this issue.

The following covenants are extracted from the indenture of a bond issue. The indenture provides that failure to comply with its terms in any respect automatically makes the loan immediately due . List any audit steps or reporting requirements you think should be taken or recognized in connection with each one of the following:
a. The debtor company shall endeavor to maintain a working capital ratio of 2-to-1 at
all times, and in any fiscal year following a failure to maintain said ratio, the com-
pany shall restrict compensation of officers to $300,000 per individual. Officers for
this purpose shall include chairman of the board of directors, president, all vice presi-
dents, secretary, and treasurer.
b. The debtor company shall keep all property that is security for this debt insured
against loss by fire to the extent of 100 percent of its actual value. Policies of insur-
ance comprising this protection shall be filed with the trustee.
c. The debtor company shall pay all taxes legally assessed against property that is secu- rity for this debt within the time provided by law for payment without penalty and shall deposit receipted tax bills with the trustee.
d. A sinking fund shall be deposited with the trustee by semiannual payments of $400,000, from which the trustee shall, in his or her discretion, purchase bonds of this issue.

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