As CPAs become responsible for more information, new types of comfort letter requests have arisen. However, not all these requests are permitted under professional standards, so CPAs need to be cautious with what they choose to accept.
“Third-party verification requests typically occur when a CPA is asked to provide a letter stating that information provided by a client is correct,” writes Laura Hay, CPA, CAE, OSCPA executive vice president in the November/December issue of CPA Voice. She advises CPAs to be wary of speculating on future events and solvency.
Hay said that the CPA will need to explain limitations to their client.
“In some cases, a comfort letter request can be an opportunity,” she said. “The CPA may be able to suggest a type of agreed-upon procedures engagement, or a financial forecast or projection under professional standards that will meet the requestor’s needs.”
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