Series 79 practice questionhardProspectus Requirements
Which of the following is a key requirement for an auditor’s comfort letter provided in connection with a securities offering?
- AIt must be addressed solely to the SEC.
- BUnderwriter-addressed negative assurance on interim data✓ Correct answer
- CIt must guarantee the accuracy of all financial statements.
- DIt can only cover information audited in prior years.
Explanation
Why B — Underwriter-addressed negative assurance on interim data
A comfort letter provides negative assurance (not a guarantee) and is addressed to underwriters, not the SEC. Comfort letters on interim data are a key due diligence tool for underwriters.
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