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Okay, so for our agreed upon procedures example, were going to be dealing with Alpha Advisors. Now Alpha Advisors is a consulting company. Its a growth company, doing well. And theyre looking to take out a loan, so theyve approached Good Times Bank to say, Hey, we need some money to help fund our growth. Now the bank says, Thats great. Wed love to loan you the money, but we need some security. We want to have some collateral against the loan. Now the problem is that again, Alpha Advisors is a consulting company. Theyre not a manufacturer. They dont have a large volume of inventory or fixed assets to pledge as collateral. So Alpha Advisors comes forth and says, Look, the only asset of significance that we have that we think we can use is our accounts receivable. Wed like to use that as the collateral. And the bank says, Well, thats acceptable to us. However, we want to perform some verification procedures to ensure those receivables are in fact legitimate before
