CPA Comfort Letter Sample (2022)

A comfort letter is a letter of assurance from a parent business or an accounting firm assuring a subsidiary company of its desire to give financial help. 

It's an affirmation letter, not a confirmation letter, that provides assurance when a consumer needs a loan or a business need financial assistance. 

When a borrower or supplier of a public organisation fails to meet its commitments on schedule, the federal government may send a comfort letter to reaffirm support.

After reviewing a company's financial statements, an auditor may provide a comfort letter, which is included with the preliminary prospectus, to ensure the report's viability before the auditing process is completed. 

It certifies that the information/report presented is accurate, and that no modifications are anticipated following a thorough assessment of the whole financial statement.

Under the Security Act of 1933, the recipient of the comfort letter must have a "due diligence" defence. 

The issuer should develop and submit a registration statement, as well as ensuring that the supplier has all of the essential current information to make an informed choice.

An organisation may issue a comfort letter in a variety of ways, based on its suitability for certain situations.

Industries, underwriters, regulated and state-controlled businesses, as well as governments, may issue it.

READ:— Sample Letter For Senior Citizens (Guide)

CPA Comfort Letter Sample

Date: 

RE: Financial Data on a Client's Request.

Respectfully,

You've asked us to provide you financial information for, one of our clients. We realise that you are seeking this information in conjunction with [client's] request for a loan/financing [or additional specifics about request and purpose] with your institution. 

You have given us permission to contact with you about this information thanks to a signed authorisation from our customer. 

We are delivering the following information/documents in response to your request [Include a statement that the information in the returns has not been independently verified and is from source(s) supplied to you by the client – if you're supplying tax returns, you should include a statement that the information in the returns has not been independently verified and is from source(s) supplied to you by the client – if you're supplying tax returns, you should include a statement that the information in the returns has not been independently verified and is from source(s) supplied to you.

In order to comply with the current Section 7216 disclosure requirements, be careful to get correct authorization for the distribution of IRS information – see Rev. Proc. 2008-35 and IRS Bulletin 2008-29 (7/21/08).

This data is based purely on information given by [client] and is derived from resources in our control. We offer no express or implied warranties or representations about the quality or validity of this data.

You have no right to depend on the information we give as accurate or true, and you may not include the distribution of this information to you as part of your reliance for the purpose of providing credit to [client]. We do not establish any separate connection with you or between you and us by supplying you with this information, and you may not afterwards claim that you extended credit [or other financing decisions/options] to [client] based on our having supplied you with this information.

We also only give this information as of the day we last got it from our client [if you have a date or date range, please add it here], and we make no attestation (explicit or implied) as to any later occurrences that may have an impact on the information/document(s) provided to you. 

Finally, you acknowledge that we have made no attestation of the material provided in the sense that professional accountants understand the word.

On behalf of the company, a signature accountant.

Related articles:—

1. Samples Letter To The President 
2. Sample Letter For Aid And Attendance 
3. Service Contract Termination Letter Sample

How to address CPA in comfort letter?