A CPA should not normally refer to which one of the following subjects in a "comfort letter" to underwriters?

Question

Quizplus · Accepted Answer

A "comfort letter" is a document issued by a CPA to provide assurance and assistance to underwriters during a securities offering. The letter typically covers various aspects related to the financial statements of the issuer, such as their accuracy and completeness. However, a CPA should not refer to management's determination of line of business classifications in this letter, as this is a subjective matter that falls outside the scope of the CPA's expertise and responsibility. Instead, the CPA should focus on providing objective and factual information related to the financial statements and disclosures. Choices A, B, and C are all legitimate subjects that may be covered in a comfort letter, depending on the circumstances.

A CPA Should Not Normally Refer to Which One of the Following