Comfort Letter

A Comfort Letter ( also Letter of Comfort) is derived from the English term in the financial and economic nature. He referred to a statement by a company statement confirming a fact, an analysis or a test and so certified quasi.

Comfort Letter of auditing firms

In the audit of company 's quarterly and annual reports provide the inspected companies from a certificate and in - certifiable, which is usually referred to due to the Anglo- American environment, as a comfort letter. This is particularly the case of listed public companies to validate the information of the company, are intended to represent a reliable source of information for shareholders.

In Germany there are no legal requirements for the creation of comfort letters, while a standard SAS 72 was introduced in the United States. This standard has been transferred in the business practice to Europe and thus also on Germany. Overall, the test companies confirm with this letter that the numbers are correct and valid, and thus represent a reliable source of information for a certain time.

Due to the costs incurred by the audit, as well as a frequently linked to the Comfort Letter liability of this sum represents a significant portion of the cost of an IPO dar.