Comfort Letters

Question 1

Who are comfort letters used for?

Answer 1

letters for underwriters– help an entity get a stock issued.

Question 2

T/F: Comfort letters are required by the SEC and must be filed?

Answer 2

False- both statements are false. They are NOT required and are NOT required to be filed

Question 3

T/F: A comfort letter should be restricted?

Answer 3

YES!! It should be only used by the intended user

Question 4

What is included in the comfort letter?

Answer 4

Introduction- Identify the registration statement and and financial statements

• Statement that the auditors are independent
• Provides positive assurance about F/S comply AS TO FORM with SEC requirements.
• Provide negative assurance provided about a variety of other matters
• Whether modifications are necessary for the condensed consolidated financial statements