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Comfort Letters - Understanding Requirements for CPAs (Course Id 2893)

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Author:

Kelen Camehl, CPA, MBA

Course Length:

Pages: 16 ||| Word Count: 7024 ||| Review Questions: 3 ||| Final Exam Questions: 5

CPE Credits:

1.0

IRS Credits:

0

Price:

$12.95

Passing Score:

70%

Course Type:

Text
Comfort Letters - Understanding Requirements for CPAs - CPE course

Technical Designation:

Technical

Field Of Study:

Auditing

Approved Audience:

NASBA QAS - NASBA Registry

Key Takeaways:

This course provides an overview of comfort letters used in securities offerings, focusing on their purpose and core limitations.

  • Identifies the purpose of comfort letters and the financial information they typically cover.
  • Distinguishes between negative and positive assurance and the procedures used for audited, unaudited, and pro forma information.
  • Covers subsequent changes, capsule information, and financial forecasts that may be addressed in a comfort letter.
  • Worth 1.0 CPE credit in Auditing as a self study course on comfort letter fundamentals, requiring a 5 question final exam preceded by 3 review questions (optional) and a 70% passing score.

Frequently Asked Questions:

The Comfort Letters Understanding Requirements for CPAs course provides a brief overview of comfort letter purpose and limitations used in securities offerings.

This course identifies who can receive a comfort letter and reviews the key principles and limitations that apply to its content.

This course is designed for CPAs and accountants who want a short, one credit hour introduction to comfort letters rather than a detailed treatment.

This Technical, self study text course in Auditing is worth 1.0 CPE credit. Completing the 5 question final exam after 3 review questions (optional) with a 70% score satisfies the requirement. CPEthink is approved by NASBA as a CPE sponsor and lists this course on the NASBA site as a courtesy for CPAs to search https://nasba.org.

Yes, Comfort Letters Understanding Requirements for CPAs provides one hour of CPE credit in fraud prevention, detection, or reporting, which counts toward the four hour fraud CPE requirement imposed by the California Board of Accountancy (http://www.dca.ca.gov/cba) on CPAs subject to the accounting and auditing, governmental auditing, or preparation engagement CE requirement.

Description:

This course provides an overview of comfort letters in securities offerings. It covers their purpose, the differences between negative and positive assurance, and the procedures for audited, unaudited, and pro forma financial information. The course also reviews handling subsequent changes, capsule information, financial forecasts, and other financial data, emphasizing what accountants can and cannot comment on. By the end, participants will understand how comfort letters support underwriter due diligence and provide assurance on selected financial information.

Usage Rank:

20000

Release:

2026

Version:

1.0

Prerequisites:

None.

Experience Level:

Overview

Additional Contents:

Complete, no additional material needed.

Additional Links:

Advance Preparation:

None.

Delivery Method:

QAS Self Study

Intended Participants:

Anyone needing Continuing Professional Education (CPE).

Revision Date:

20-Jun-2026

NASBA Course Declaration:

Participants must complete the final examination within one year of purchase and with a minimum passing grade of 70% or better to receive CPE credit unless otherwise noted on the Course History page (i.e. California Ethics must score 90% or better). After logging in click on the Course History links on your My Courses page for the Begin date and Expire date for the Final Exam.

Keywords:

Comfort Letters - Understanding Requirements for CPAs - CPE course

Learning Objectives:

Course Learning Objectives

Upon completion of this course, you will be able to:

  • Identify the purpose of comfort letters and the financial information they cover
  • Distinguish between negative and positive assurance and the procedures for audited, unaudited, and pro forma information
  • Recognize subsequent changes, capsule information, and financial forecasts included in comfort letters
  • Select matters accountants can comment on and differentiate how comfort letters support underwriter due diligence

Course Contents:

Chapter 1 - Comfort Letters - Understanding Requirements for CPAs

Course Learning Objectives

Course Overview

Introduction

Importance of Comfort Letters

Comfort Letter Recipients

Key Principles and Limitations

Form and Content Requirements

Review Questions

Introductory Paragraph

Information Other Than Audited Financial Statements

Concluding Paragraph

Subsequently Discovered Matters

Illustrative Example

Conclusion

Review Questions

Glossary of Key Terms

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