Warning

Info

Warning

Info

Warning

Info

LSDefine

Simple English definitions for legal terms

comfort letter

Read a random definition: vacation barrister

A quick definition of comfort letter:

A comfort letter is a statement from an auditor that says they reviewed a company's financial information and it is accurate. When companies sell stocks to the public, underwriters ask for comfort letters to protect themselves from being sued for securities fraud. The letter includes information about the auditor's independence, how they checked the financial information, and how confident they are that it is accurate. If the financial information has been audited, the auditor will say they are very sure it is accurate. If it hasn't been audited, they will only say they didn't see any problems.

A more thorough explanation:

A comfort letter is a statement from an auditor that confirms the accuracy of a company's financial data. It is often requested by underwriters in public offerings to establish a due diligence defense against liability for securities fraud. The letter includes information about the auditor's independence, the accuracy of the financial statements, and the procedures used to review them.

For example, if a company is planning to go public and sell shares of stock, the underwriters may request a comfort letter from the company's auditor. The letter would confirm that the financial statements provided by the company are accurate and comply with accounting standards.

Another example is when a company is seeking a loan from a bank. The bank may request a comfort letter from the company's auditor to confirm the accuracy of the financial statements provided by the company.

These examples illustrate how comfort letters are used to provide assurance to third parties about the accuracy of a company's financial data.

comfort care | coming to the nuisance

Warning

Info

General

General chat about the legal profession.
main_chatroom
👍 Chat vibe: 0 👎
Help us make LSD better!
Tell us what's important to you
THATS SO FUNNY
i cant i would go crazy
JumpySubsequentDolphin
20:50
i need to know who decided to do that.
JumpySubsequentDolphin
20:50
omg im on a plane weeeee
the devil
youre on a plane??? LSD made the mile high club??
20:50
yo splitterus are you in school already
20:50
it says ur c/o 2027
JumpySubsequentDolphin
20:51
@SplitterusClitterus: HAHAH yes
ur user is hilarioussss and no i just graduated this may and am now applying ---also im out of messages so ill take a lil
20:52
roger dat. see u in heck
im back, r u applying this cycle too
JumpySubsequentDolphin
21:32
this child fell asleep on me
JumpySubsequentDolphin
21:32
im so uncomfortable
just push him off the entire seat
JumpySubsequentDolphin
21:34
LMAOOOO
JumpySubsequentDolphin
21:35
no he’s literally like 8 and he fully just put his head on my bicep and slept
JumpySubsequentDolphin
21:35
he has since moved
22:12
@SplitterusClitterus: me yesterday
gulc baby pls text me back... i miss you ...... :(
22:23
i just went into a discord vc and yelled "YALL I JUST GOT INTO J.M. SCHOOL OF LAW"
22:24
people were getting excited :sob:
22:25
then someone was like "what does jm stand for" and i was like .. well
AHHAHAHAHAHAHHAHAHAHAHAHAH
@JumpySubsequentDolphin: wait this is so cute, also where r u going
JOE MBIDEN
JumpySubsequentDolphin
22:39
@splitty Oregon!
oh yay for what thats so random
JumpySubsequentDolphin
22:45
haha my brother and sister in law live there
so cutie oregon is beatiful
LSD+ is ad-free, with DMs, discounts, case briefs & more.