Who is a comfort letter typically addressed to?
Comfort letters are almost never issued to the general public. Rather, comfort letters have restricted use and are only prepared for the financial institution that is issuing the security.
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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 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.
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 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.