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 ?
Comfort letters are available in very limited circumstances where the EPA provides a measure of "comfort" by providing a letter to an interested party explaining the potential or actual involvement EPA may seek.
The Auditor General of Canada has noted the compliance and administrative challenges that the comfort letters pose for taxpayers and CRA alike and, in response to the Auditor General's recommendations, the Department said that it has a plan to clear the backlog of comfort letters for which legislation has not yet been proposed.
Underwriters are required to obtain a comfort letter from the accountants as part of their due diligence under the securities laws.
72 required any party requesting a comfort letter (a special type of agreed-upon-procedures report issued in connection with a securities offering registered with the Securities and Exchange Commission) that did not have a due diligence defense under section 11 of the Securities Act of 1933 to provide CPAs with a letter making certain representations.
By definition, comfort letters contain no express promises to pay or collect.
NONE of six suspects identified over the IRA's Shankill Road bomb atrocity received so-called comfort letters, the High court heard yesterday.
2) Comfort letters and subsequent bring-down comfort letters, as required and upon the issuance of the 2016, 2017 and 2018 audited financial statements, for bond financings.
FORMER secretary of state for Northern Ireland Peter Hain has said it is risible for key politicians to claim they had no knowledge that so-called comfort letters were sent to IRA on-theruns (OTRs).
In previous years, comfort letters were confined to mortgage lenders.
Many of the amendments implement changes of a relieving nature that were "promised" to tax payers or their representatives in a series of so-called comfort letters.
Auditing services under the Act may include providing comfort letters in connection with the client's securities underwritings and statutory audits for insurance companies.
The guidance draws from AICPA professional standards and covers the elements of a firm's quality control system that could be affected by the addition of new clients or personnel including: independence; personnel management, including audit partner rotation and concurring partner review; acceptance and continuance of clients and engagements; engagement performance, including completion of audits in progress, re-audits, quarterly reviews, issuance of comfort letters and discovery of possible mis-statements in financial statements reported on by a previous auditor; and quality-control monitoring.