comfort letter


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Comfort letter

A letter from an independent auditor included in a preliminary prospectus stating that, while a full audit has not been undertaken, the auditor has done a 'review' sufficient to assure that financial statement information in the preliminary prospectus is correctly prepared to the best of the auditor's knowledge. The auditor in effect states that, had a full audit been done, they are comfortable that the audited financial statements would not be materially different from the ones presented in the preliminary prospectus.

Comfort Letter

Before or during a new issue, a statement by an auditor stating that, while a full audit has not been done, a review of the issue's prospectus has revealed nothing inaccurate or misleading. The comfort letter also states that the auditor is confident that a full audit would not uncover anything unusual that would negatively affect the issue.

comfort letter

A statement issued by a Certified Public Accountant declaring no indication of false or misleading information in the financial statements being used in connection with a securities offering.
References in periodicals archive ?
She said discoms are taking a loan of ` 11,000 crore and this is a comfort letter for that which is just a formality.
Financial backers and debt providers of Core Citadel Capital platform company Egyptian Refining Company have received a renewal of its comfort letter from the Government of Egypt, signaling unwavering state backing for the strategic $3.
Finally, the SEC has suggested that receiving a comfort letter from attorneys, broker-dealers, and accountants of the investor may be enough for the issuer to rely on the investor's claim of accreditation.
The comfort letter included a clause which prevented Sir Stelios from speaking negatively about the airline, while also preventing him from either setting up a rival airline or becoming a significant holder in another carrier.
The time lag imposes financial burdens on companies since they cannot reflect in their financial statements the changes to the Act presaged by the comfort letter.
This comfort letter included a 'mutual respect' clause which prevented Sir Stelios from speaking negatively of the airline, while also preventing him from either setting up a rival airline or becoming a significant holder in another carrier.
The government gave a comfort letter guaranteeing that PLN would meet its obligation to the investors.
On the issue of comfort letter, the source said as per this letter, the Government of Pakistan would have to allow a third country to import gas through IP pipeline in the event of any such country joining the project in the future.
Fayyad is seeking a so-called comfort letter from the Washington-based international lending agency to obtain short-term private bank funding, the sources said, speaking on condition of anonymity.
Underwriters are required to obtain a comfort letter from the accountants as part of their due diligence under the securities laws.
As part of the due diligence process, the initial purchasers, like underwriters in a registered offering, require, as a matter of practice and custom, an accountant's comfort letter on all financial information contained in the OC, and disclosure or negative assurance letters from both the initial purchasers' and the company's respective counsel.
The Company has negotiated a comfort letter with the Neskantaga First Nations and will be utilizing their facilities for logistical purposes for at least the first half of the program.