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Flashcards in Letters for Underwriters Deck (7)
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1

What type of assurance does a comfort letter express?

Negative

2

What type of defense may an underwriter use?

Due diligence

3

Why do underwriters request comfort letters?

As part of their process of reasonable investigation.

4

What procedure is required when a comfort letter is issued?

Review of interim financial information

5

Is comfort letters restricted use?

Yes

6

What is positive assurance provided with respect to?

CPA's independence and compliance

7

What should the auditor not comment or provide assurance on?

Market risk sensitive instruments and qualitative disclosures