The underwriter of a securities offering may request that an auditor perform specified procedures and supply certain assurances concerning unaudited information contained in a registration statement.The auditor's response to such a request is commonly called a:
A)Report under federal security statutes.
B)Comfort letter.
C)Review of interim financial information.
D)Compilation report for underwriters.

Question

Quizplus · Accepted Answer

The auditor's response to the underwriter's request for specified procedures and assurances on unaudited information is commonly referred to as a comfort letter. This letter is intended to provide limited assurance to the underwriter that the unaudited information is reliable and accurate. It is not a formal audit report or a review of interim financial information, and it is not a compilation report.

The Underwriter of a Securities Offering May Request That an Auditor