Why CPAs shouldn't provide comfort letters

03/17/2013 | AICPA Insights

CPAs and accountants are often asked to provide verification of certain items within a client's financial statement -- the so-called comfort letters -- by a regulator, bank or other organization, writes Susan S. Coffey, CPA, CGMA, SVP, Public Practice and Global Alliances, AICPA. Coffey does not recommend providing such records and in some cases standards prohibit it. "Not only does it put you and your practice in a very risky liability situation, you may face sanctions or loss of license if you sign any solvency-related comfort letters or certifications," she writes. AICPA Technical Practice Aids on lender comfort letters provides appropriate responses to requests to confirm client information.

View Full Article in:

AICPA Insights

Published in Brief: