What do the audit procedures for All States M.E.D. include examining?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
In performing an audit in accordance with GAAS, we:
- Exercise professional judgment and maintain professional skepticism throughout the audit.
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness All States M.E.D. Franchising, LLC.'s internal control. Accordingly, no such opinion is expressed.
- Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
- Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about All States M.E.D. Franchising, LLC.'s ability to continue as a going concern for a reasonable period of time.
Source: Item 23 — RECEIPTS (FDD pages 44–174)
What This Means (2024 FDD)
According to All States M.E.D.'s 2024 Franchise Disclosure Document, the audit procedures involve examining evidence regarding the amounts and disclosures in the financial statements on a test basis. This means the auditors will not check every single transaction, but rather a sample of transactions to form an opinion on the financial statements.
The auditors also obtain an understanding of internal control relevant to the audit. This is done to design audit procedures that are appropriate for the circumstances. However, the audit is not for the purpose of expressing an opinion on the effectiveness of All States M.E.D.'s internal control, and no such opinion is expressed.
Additionally, the audit includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management. The auditors also evaluate the overall presentation of the financial statements. Finally, the auditors conclude whether there are conditions or events that raise substantial doubt about All States M.E.D.'s ability to continue as a going concern.