What Does an Underwriter Typically Require from an Accountant Which

question 28

Multiple Choice

What does an underwriter typically require from an accountant which indicates that the company has fulfilled all the accounting requirements in the registration process?

• A)A comment letter
• B)An audit opinion
• C)A "red herring" prospectus
• D)A comfort letter

---

Definitions:

Ordinary Course

Pertains to regular business activities and operations conducted by an entity under normal circumstances.

Security Interest

A financial mechanism that gives a lender priority over the borrower's assets or property in the case of default.

Financing Statement

A document filed by a creditor to indicate a security interest in the personal property of a debtor, used to perfect a lien.

Perfection

In the context of securing interests in property, it is the process of completing all required legal steps to enforce a security interest against third parties.