The Auditing Standards Board (ASB) has issued Statement on Auditing Standards (SAS) No. 129, Amendment to Statement on Auditing Standards No. 122 Section 920, Letters for Underwriters and Certain Other Requesting Parties, as amended(AICPA, Professional Standards, AU-C sec. 920), to address unintended changes to previous practice as a result of its Clarity Project.
AU-C section 920 addresses the auditor’s responsibilities when engaged to issue letters (commonly referred to as comfort letters) to requesting parties in connection with a nonissuer entity’s financial statements included in a registration statement or other securities offerings. This amendment
SAS No. 129 is effective for comfort letters issued on or after December 15, 2014. Early implementation is encouraged.