The reporting accountant may be asked by the director or by the sponsor to prepare reports on other matters. These letters are not for publication and are not required by statute or other regulations. The reason for them is that the directors must make statements in the prospectus on such matters as:

a) The adequacy of working capital

b) The aggregate of borrowings at the latest practicable date

c) Any pro-forma financial statement shown in the prospectus to indicate the effect of a major acquisition or re-organisation

d) Taxation clearances and indemnities

e) Any other financial information anywhere in the prospectus.

Clearly the directors or sponsor must be sure these matters are correctly stated and thus ask the reporting accountant to investigate and give a comfort letter that all is well.