In this lesson, the responsibilities of auditors when engaged to issue comfort letters are discussed, particularly in relation to non-issuer entities filing registration statements with the SEC or participating in other security offerings. The lesson explains the concept of comfort letters, which are essentially a lighter version of audit reports that provide additional assurance to underwriters and their clients. The role of underwriters is further detailed, as they are essential in managing the process of initial public offerings (IPOs) and other security offerings. The lesson also clarifies that auditors are not required to accept engagements to issue comfort letters and elaborates on the nature of security offerings, which may involve stocks, bonds, or other investment instruments.
Lesson: Comfort Letters and Underwriters
In this lesson, the responsibilities of auditors when engaged to issue comfort letters are discussed, particularly in relation to non-issuer entities filing registration statements with the SEC or participating in other security offerings. The lesson explains the concept of comfort letters, which are essentially a lighter version of audit reports that provide additional assurance to underwriters and their clients. The role of underwriters is further detailed, as they are essential in managing the process of initial public offerings (IPOs) and other security offerings. The lesson also clarifies that auditors are not required to accept engagements to issue comfort letters and elaborates on the nature of security offerings, which may involve stocks, bonds, or other investment instruments.
Updated: June 22, 2023 Create an account