Letters for Underwriters Flashcards
1
Q
What type of assurance does a comfort letter express?
A
Negative
2
Q
What type of defense may an underwriter use?
A
Due diligence
3
Q
Why do underwriters request comfort letters?
A
As part of their process of reasonable investigation.
4
Q
What procedure is required when a comfort letter is issued?
A
Review of interim financial information
5
Q
Is comfort letters restricted use?
A
Yes
6
Q
What is positive assurance provided with respect to?
A
CPA’s independence and compliance
7
Q
What should the auditor not comment or provide assurance on?
A
Market risk sensitive instruments and qualitative disclosures
