what does an underwriter typically require from an accountant which indicates that the company has fulfilled all the accounting requirements in the registration process?

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01-12-2022
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what does an underwriter typically require from an accountant which indicates that the company has fulfilled all the accounting requirements in the registration process?

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jaiswaljyoti jaiswaljyoti · Answer 1 · 2022-12-05T18:37:06+01:00

The correct answer is a comfort letter.

An underwriter typically requires a comfort letter from an accountant which indicates that the company has fulfilled all the accounting requirements in the registration process.

A comfort letter as the name suggests is a letter or a document that is made by an accounting firm for the recipient that assures the financial backing the company has because of the clause or the agreement the company has agreed to or signed,

In corporate surroundings, a comfort letter is usually signed or given to establish a due diligence defense to avoid liability for financial scams or fraud.

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