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 ?
Egyptian Refining Company (ERC), a core platform company of Citadel Capital has received official renewal of the Government of Egypt's comfort letter for the strategic national project.
Owing to a succession of minority government during the past several years, it has been difficult for the Government to enact legislation of any stripe, including technical amendments implementing comfort letter interpretations.
Before performing this work, the CPA firm should sign an engagement letter with the underwriter that outlines acceptable use and scope of the comfort letter.
FEE backs a standard pan-European comfort letter formula, drawing on the current widely-used system of due diligence.
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.
While bankers and lawyers recognize the auditor's definition, they also use the term comfort letter to describe:
Privatisation Commission (PC) has sought a comfort letter on Power Purchase Agreement (PPA) and generation licence of Kot Addu Power Company (Kapco) from the Water and Power Ministry prior to offer Government of Pakistan's (Gop) residual shares to investors during domestic road shows next week, well-informed source said to Research Analyst-PAGE.
If the CPA agrees to provide a comfort letter, it should include:
The finance ministry on February 7 had issued a comfort letter to Indian Oil Corp ( IOC), Bharat Petroleum Corp ( BPCL) and Hindustan Petroleum Corporation ( HPCL) sanctioning ` 25,000 crore for part of the revenue they lost on selling diesel, domestic LPG and kerosene below cost, official sources said.
The comfort letter included a "mutual respect" clause that 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.
That said, I note several developments that give us reason to ask whether cautious optimism may be in order, including the removal of my name from the list of individuals prohibited from travelling, regulatory approval to hold an EGM to vote on our proposed $175 million rights issue, our receipt of a comfort letter from the Ministry of Petroleum for the Egyptian Refining Company, and our ranking as the largest private equity firm in Africa for the third year running.