What standards are followed when performing an audit of All Team's financial statements?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of All Team Franchise Corporation and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 33)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the company's financial statements are audited in accordance with auditing standards generally accepted in the United States of America. The goal of the audit is to provide reasonable assurance that the financial statements are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes an opinion on the financial statements. Reasonable assurance is defined as a high level of assurance, but it is not absolute, so there is no guarantee that an audit will always detect a material misstatement. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error.
During the audit, the auditors exercise professional judgment and maintain professional skepticism. They 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. These procedures include examining evidence regarding the amounts and disclosures in the financial statements on a test basis. The auditors 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 of All Team's internal control.
The auditors 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. They also conclude whether there are conditions or events that raise substantial doubt about All Team's ability to continue as a going concern for a reasonable period of time. The auditors are required to communicate with those charged with governance regarding the planned scope and timing of the audit, significant audit findings, and certain internal control related matters identified during the audit.
For a prospective All Team franchisee, this means that the financial statements presented in the FDD have been reviewed by an independent auditor using standardized practices. While the audit provides a level of confidence in the accuracy of the financial statements, it is not a guarantee. Franchisees should carefully review the financial statements and consider consulting with a financial advisor to fully understand the financial health of All Team.