What is the auditor's responsibility regarding All County's financial statements?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
epted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial stDtePents 7Ke proFedures seOeFted depend on tKe Duditor's MudJPent inFOudinJ tKe DssessPent oI risNs oI PDteriDO misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internDO FontroO reOeYDnt to tKe entit's prepDrDtion Dnd IDir presentDtion oI tKe IinDnFiDO stDtePents in order to desiJn Dudit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entit's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, the auditor's responsibility is to express an opinion on the financial statements based on their audits. The auditor must conduct the audits in accordance with auditing standards generally accepted in the United States of America, planning and performing the audit to obtain reasonable assurance that the financial statements are free of material misstatement. The audit involves obtaining evidence about the amounts and disclosures in the financial statements, with the procedures selected depending on the auditor's judgment, including the assessment of risks of material misstatement, whether due to fraud or error.
As part of the risk assessments, the auditor considers internal control relevant to All County's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate. However, the auditor does not express an opinion on the effectiveness of the entity's internal control. The audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
The auditor, Joe Teston CPA Advisors, believes that the audit evidence they have obtained is sufficient and appropriate to provide a basis for their audit opinion. Their opinion states that the financial statements present fairly, in all material respects, the financial position of All County as of December 31, 2024, 2023, & 2022, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.