Under what circumstances an independent auditor can issue comfort letter to his/her client?

Auditing and Assurance Revision Questions and Answers

A letter from independent auditor including in a preliminary prospectus stating that, while a full audit has not undertaken, the auditor has done a review sufficient to assure that financial statement information in the preliminary prospectus is correctly prepared to the best of the auditor knowledge. The auditor in effort states that, had a full audit been done, they are comfortable that the audited financial statements would not be materially different from the ones presented in the preliminary prospectus.

Before or during a new issue, a statement an auditor stating that, while a full audit has not been done, a review of the issue’s prospectus has revealed nothing inaccurate or misleading. The comfort letter also

states that the auditor is confident that a full audit would not uncover anything unusual that would negatively affect the issue.
In other word, a letter is given to organizations or persons of interest external auditors regarding statutory audits, statements and reports used in a prospectus. The comfort letter will be attached to the preliminary statements as assurance that it will not be materially different from the final version.

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