In addition to examining the financial statements of the \(A B C\) Company at December 31, 19X0, the auditor agrees to review the loan agreement dated July 1, 19X0 with the Main Street Bank to determine whether the borrower is complying with the terms, provisions, and requirements of sections 14 to 30 inclusive. The auditor finds that the \(A B C\) Company is in full compliance with the loan agreement.

Required:

a. Prepare a report on compliance with contractual provisions assuming it is to a separate report.

b. Indicate how the report on compliance would differ if it was included as part of the auditor's report on the financial statements.