Letters for Underwriters and Certain Other Requesting Parties Form

The purpose of the SAS 114 letter is to openly communicate and advise on matters related to the financial statement audit process and relay any issues found as they relate to the division of responsibilities between the independent auditor and management, management disagreements, audit adjustments, and accounting ... After the Audit: An Overview of SAS 114 & SAS 115, Auditor's ... randacpas.com https://randacpas.com › after-the-audit-an-overview-of-s... randacpas.com https://randacpas.com › after-the-audit-an-overview-of-s...

A SAS 72 auditor representation letter (also called, among other things, a SAS 72 letter, an underwriter representation letter or auditor representation letter) may be delivered by the underwriters or certain other parties to an issuer's independent accountants (referred to herein as auditors) in connection with that ... Lexis Practice Advisor - SAS 72 Auditor Representation ... Kirkland & Ellis LLP https://.kirkland.com › Publications › Lexi... Kirkland & Ellis LLP https://.kirkland.com › Publications › Lexi... PDF

A letter of comfort is a written document that provides a level of assurance that an obligation will ultimately be met. A letter of comfort is often couched in vague wording, in order to prevent the issuer from being saddled with a legally enforceable obligation.

Comfort letters are very different in nature to security or guarantees. They do not create rights over assets and, in most cases, they will not even be legally binding.

While the cut-off date is subject to some negotiation, it is common practice for a comfort letter to have a cut-off date that is one to three business days before the date of the comfort letter, and for a bring-down comfort letter to have a cut-off date that is one to two business days before the closing date.

Comfort letters also may be issued by accounting firms to underwriters promising to carry out "reasonable investigation" into new offerings of securities. These letters commit the accounting firm to delivering a report that conforms to generally accepted accounting principles (GAAP).

In these instances, the auditors perform procedures similar to those they would perform if they were delivering negative assurance. However, their conclusion is limited to stating that certain officials have confirmed that specified matters met a specified standard. Such a letter is known as a "SAS 76" comfort letter. SAS 72 letters - Proskauer Proskauer https://.proskauer.com › uploads › sas-72-l... Proskauer https://.proskauer.com › uploads › sas-72-l... PDF

October 09, 2023. Share: Your lender might ask you for a letter of explanation (sometimes called an LOE) during the underwriting process. A letter of explanation consists of short descriptions you can use to fill in the gaps in your paperwork for your underwriter.

Comfort letters are an important part of the underwriters' due diligence review and defence from potential liability under US securities law. Comfort letters are often referred to as SAS 72 letters, which relates to the Statement on Auditing Standards 72 (SAS 72) on which they are based.

Negative assurance is often used in the context of comfort letters provided by auditors in connection with securities offerings. These letters typically include negative assurance on unaudited financial information and other financial data contained in the offering document.

Comfort letters are statements from an issuer's auditor that the auditor reviewed the issuer's financial data and assures its accuracy. In public offerings, underwriters generally request comfort letters to establish a due diligence defense to avoid liability for securities fraud.

Negative assurance is provided in letter format, and is used explicitly in conjunction with another document. The letter is usually used by the counsel to establish two standard facts about the document in question. Negative assurance - Wikipedia Wikipedia https://en.wikipedia.org › wiki › Negative_assurance Wikipedia https://en.wikipedia.org › wiki › Negative_assurance

Underwriting decision Once the underwriter thoroughly reviews your application, they will hopefully approve you for a mortgage. That gives you the all-clear to proceed to closing on the property.