What does an underwriter typically require from an accountant which indicates that the company has fulfilled all the accounting requirements in the registration process?
A)A comment letter
B)An audit opinion
C)A "red herring" prospectus
D)A comfort letter

Question

Quizplus · Accepted Answer

A comfort letter is a letter from an accountant to an underwriter that provides assurance that the financial information presented in a registration statement is accurate and complies with accounting requirements. It is typically required by underwriters as part of the due diligence process. An audit opinion and a comment letter may also be required, but they are not specifically related to indicating that the company has fulfilled all accounting requirements in the registration process. A "red herring" prospectus is a preliminary version of a prospectus and is not related to the accounting requirements.

What Does an Underwriter Typically Require from an Accountant Which