What type of assurance is provided in a comfort letter?
If the financial statements were audited, then the CPA firm will provide positive assurance. If the financial statements are unaudited, then limited/negative assurance will be provided.
Back To All Questions
You might also be interested in... What is a comfort letter?
The Securities Act of 1933 has determined that underwriters may be held liable for any omissions that are deemed material in an issuing registration statement. Therefore, a registration party (i.e. broker-dealers, financial intermediaries etc.), will request that a comfort letter is issued from the named auditor prior to the registration of a client’s securities. In...
What is a comfort letter?
The Securities Act of 1933 has determined that underwriters may be held liable for any omissions that are deemed material in an issuing registration statement. Therefore, a registration party (i.e. broker-dealers, financial intermediaries etc.), will request that a comfort letter is issued from the named auditor prior to the registration of a client’s securities. In...
