What must the auditor evaluate regarding accounting policies when auditing All Dogs Unleashed?
All_Dogs_Unleashed Franchise · 2025 FDDAnswer from 2025 FDD Document
- 10.1.
Computer System.
You shall acquire and use only the computer systems and equipment that Franchisor prescribes for use by ALL DOGS UNLEASHED Franchised Businesses ("Computer System"), and adhere to Franchisor's requirements for use.
Requirements may include, among other things, connection to remote servers, off-site electronic repositories, and high-speed Internet connections.
As technology or software is developed in the future, Franchisor may, in its sole discretion, require you to add to your Computer System memory, ports, and other accessories or peripheral equipment or additional, new, or substitute software, and replace or upgrade your Computer System and software as Franchisor prescribes.
You shall acquire, install and maintain such anti-virus and anti-spyware software as Franchisor requires, and shall adopt and implement such Internet user policies as Franchisor may prescribe for purposes of avoiding, blocking, and eliminating viruses and other conditions that interfere with operation of the Computer System.
Source: Item 23 — RECEIPTS (FDD pages 49–158)
What This Means (2025 FDD)
Based on the 2025 All Dogs Unleashed FDD, the document outlines several requirements for the computer systems, accounting, and record-keeping that a franchisee must adhere to, but it does not explicitly state the specific accounting policies or procedures that an auditor must evaluate.
Item 10.1 states that franchisees must use only the computer systems and equipment that All Dogs Unleashed prescribes and adhere to the franchisor's requirements for use. These requirements may include connection to remote servers, off-site electronic repositories, and high-speed internet connections. The franchisor may also require franchisees to add to their computer system memory, ports, and other accessories or peripheral equipment or additional, new, or substitute software, and replace or upgrade their computer system and software as the Franchisor prescribes. Franchisees must also acquire, install, and maintain anti-virus and anti-spyware software as All Dogs Unleashed requires and adopt and implement such Internet user policies as All Dogs Unleashed may prescribe for purposes of avoiding, blocking, and eliminating viruses and other conditions that interfere with the operation of the Computer System.
While the FDD specifies the use of a required computer system, it does not detail the specific accounting policies that an auditor would need to assess. A prospective franchisee should seek clarification from All Dogs Unleashed regarding the specific accounting policies and procedures that are subject to audit, as well as any requirements for financial reporting or compliance.