What CPAs Need to Know About Comfort Letters (Course Id 2900)

• Who is this course for?
  This course is designed for CPAs, accountants, and other professionals seeking Continuing Professional Education (CPE), particularly those who want an overview of comfort letters used in securities offerings.
• What is this course about or what problem does this course solve?
  This course explains the purpose, structure, and limitations of comfort letters, helping participants understand the procedures accountants perform, the types of financial information covered, the distinction between negative and positive assurance, and what accountants can and cannot comment on during securities offerings.
• Where can the knowledge from this course be used?
  The knowledge gained from this course can be applied in auditing engagements and securities offerings where accountants prepare or evaluate comfort letters, perform agreed-upon procedures on financial information, and support underwriter due diligence.
• Why is this course important to a CPA or Accountant?
  This course helps CPAs and accountants understand their responsibilities, reporting limitations, and professional procedures when issuing comfort letters, enabling them to appropriately support securities offerings while complying with applicable auditing practices.
• When is this course relevant or timely?
  This course is relevant whenever a CPA or accountant is involved in a securities offering, prepares or reviews comfort letters, evaluates audited, unaudited, or pro forma financial information, or needs to understand the role of comfort letters in underwriter due diligence.
• How is a course like this consumed or used?
  This self-study text course is completed at the participant's own pace by reading the course material, reviewing the concepts presented, and successfully passing the final exam to earn 2.0 CPE credits.

This course provides a detailed overview of comfort letters in the context of securities offerings. It covers the purpose of comfort letters, the differences between negative assurance and positive assurance, and the procedures accountants perform on audited, unaudited, and pro forma financial information. The course also addresses how to handle subsequent changes, capsule information, financial forecasts, and other financial data, while highlighting what accountants can and cannot comment on. By the end of the course, participants will understand how comfort letters support underwriter due diligence and the role they play in providing assurance on selected financial information.

Course Learning Objectives

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