[Longname]

My Becker material did not provide the answer for the following research question in Chapter 2, can anybody post the answer onto here ?

“Management informed your firm’s Engagement partner that a prospective lender made a preliminary request for a CPA’s letter regarding the company’s solvency. The partner requested that you find guidance in the AICPA Professional standards regarding whether the CPA is permitted to provide assurance on matters relating to solvency”

Thank you for your help in advance!!!

[Anonymous]

This may be completely off the mark, but it's the best I could find in a hurry

AU-C Section 920*

Letters for Underwriters and Certain Other Requesting Parties

Source: SAS No. 122; SAS No. 125.

Effective for comfort letters issued on or after December 15, 2012.

.04 The subjects that may be covered in a comfort letter include:

• the independence of the auditor.

• whether the audited financial statements included in the securities

offering comply regarding form, in all material respects, with

the applicable accounting requirements of the 1933 Act and the

related rules and regulations adopted by the SEC.

•unaudited financial statements, condensed interim financial information,

capsule financial information, pro forma financial information,

financial forecasts, management's discussion and analysis

(MD&A), and changes in selected financial statement items

during a period subsequent to the date and period of the latest

financial statements included in the securities offering.

• tables, statistics, and other financial information included in the

securities offering.

• negative assurance about whether certain nonfinancial statement

information included in the securities offering complies regarding

form, in all material respects, with Regulation S-K.

https://www.aicpa.org/Research/Standards/AuditAttest/DownloadableDocuments/AU-C-00920.pdf

Since going concern or solvency isn't one of the items that may be covered in a comfort letter would this answer the question?

[Longname]

What I found is AT Section 9101 .25, not sure which one is right. Anyway thank you. Hope there will be more people coming to post their answers.

[Anonymous]

I read that one too, but since it was an interpretation and not a standard and since it deals so specifically with the Defense industry, I wasn't sure if it was correct. Is there anyone at Becker you can contact for the correct answer? I'd really like to know the answer. This has become a quest for me!!!

[Author]

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