What is SAS 72 comfort letter?
SAS 72 comfort letters customarily acknowledge that: the auditors have audited the audited financial statements that are included in the prospectus, and. their reports on these financial statements have also been included in the prospectus.
What is a SAS 72?
72 (“SAS 72”) provides guidance to accountants in the preparation of comfort letters, including their scope and form. (SAS 72 is also referred to as “AU Section 634,” where it was subsequently codified.) SAS 72 sets forth the contents of sample letters, which have become the basic industry text for these letters.
What is the 135 day rule?
If 135 days or more have elapsed since the date of the issuer’s most recent audited annual financial statements or reviewed interim financial statements, on one hand, and the cut-off date of the comfort letter, on the other hand, then auditors will not be able to give any negative assurance as to subsequent changes in …
Who is a comfort letter addressed to?
A comfort letter may be addressed to parties with a statutory due diligence defense under section 11 of the Act, other than a named underwriter, only when a law firm or attorney for the requesting party issues a written opinion to the accountants that states that such party has a due diligence defense under section 11 …
What are bring down procedures?
Comfort letters are typically signed prior to the pricing decision or closing date for a given public offering or other transaction, as a part of the due diligence process. Subsequently, a “bring-down” letter is used to re-verify, as of a later date, that the original comfort letter is still valid.
What is AML comfort letter?
A comfort letter assures the recipient of the soundness of an individual or company it is considering doing business with. Such letters may be sent by auditors, accounting firms, or parent companies. A comfort letter does not contain any legally enforceable promises.
How do I get a comfort letter from CRA?
How to request a comfort letter. You must send your request for a comfort letter in writing. Send it either by mail or by fax to the tax services office nearest to the business. Any third party request must be sent with a letter of authorization, unless the requestor is already authorized for each program account.
What is a SAS 100 review?
SAS 100 contains more detailed and extensive guidance than that found in SAS 71. SAS 100 is effective for reviews of interim financial information for fiscal years beginning after December 15, 2002. The provisions in SAS 100 could have been utilized in advance of the required effective date.
What is value for money audit?
Value for money audit relates to the extent to which funds are expended economically and efficiently and the extent to which the related programmes are effective in meeting their objectives.
What is a circle up in a comfort letter?
A full comfort letter includes a letter with representations by the auditors and a circle-up of the offering document. The circle-up identifies numbers in the offering document that the auditors reviewed. A bring-down comfort letter is short and often does not include a circle-up, but it can when applicable.
What is an AML comfort letter?
Is SAS 72 still used today?
The term “SAS 72” is still widely used to refer to the current auditing standard that governs letters for underwriters and certain other requesting parties, even as the classification of auditing standards has been reorganized and renumbered over time. SAS 72 provides guidance on the form and content of comfort letters.
What are the SAS Audit Standards for financial statements?
SAS Nos. 122–127 and SAS No. 128 are effective for audits of financial statements for periods ending on or after December 15, 2012, and December 15, 2014, respectively. Please refer to the clarified Statements on Auditing Standards for current guidance.
What is as 6101 AAS 72?
SAS 72 (AS 6101) The standard that refers to Auditing Standards 6101: Letters for Underwriters and Certain Other Requesting Parties (AS 6101) published by the PCAOB. SAS 72 derives its name from a preceding version of this standard.
When is AU Section 722 applicable to an audit?
This section amends paragraph .05 of AU section 722 such that AU section 722 would be applicable when the accountant audited the entity’s latest annual financial statements, and the appointment of another accountant to audit the current year financial statements is not effective prior to the beginning of the period covered by the review.