Comfort Letters – Understanding Requirements for CPAsCode: 27-COMFLETTERS

This course provides an overview of comfort letters in securities offerings. It covers their purpose, the differences between negative and positive assurance, and the procedures for audited, unaudited, and pro forma financial information. The course also reviews handling subsequent changes, capsule information, financial forecasts, and other financial data, emphasizing what accountants can and cannot comment on. By the end, participants will understand how comfort letters support underwriter due diligence and provide assurance on selected financial information.

Upon completion of this course, you will be able to:

• Identify the purpose of comfort letters and the financial information they cover

• Distinguish between negative and positive assurance and the procedures for audited, unaudited, and pro forma information

• Recognize subsequent changes, capsule information, and financial forecasts included in comfort letters

• Select matters accountants can comment on and differentiate how comfort letters support underwriter due diligence

Category: Auditing

Recommended CPE Hours: 1

Level of knowledge: Update

Prerequisite: Basic understanding of Auditing

Advanced Preparation: None