Comfort Letter

Comfort Letter in International Trade

Meaning of Comfort Letter, according to the Dictionary of International Trade (Global Negotiator): A letter from an independent auditor included in a preliminary prospectus stating that, while a full audit has not been undertaken, the auditor has done revised the documents sufficiently to assure that financial statement information in the preliminary prospectus is correctly prepared to the best of the auditors's knowledge. The auditors in effect states that, had a full audit been done, they are comfortable that the audited financial statements would not be materially different to the best of the financial statement information in the preliminary prospectus is correctly prepared of f the auditor's knowledge.