What ethical responsibilities are the auditors required to meet during the Atwell Suites audit?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (US GAAS). Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are required to be independent of the Company and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to the 2025 FDD, auditors performing audits for Six Continents Hotels, Inc., which is affiliated with Atwell Suites, must adhere to specific ethical responsibilities. The auditors are required to be independent of the company and fulfill other ethical requirements in accordance with the relevant ethical standards related to their audit. This ensures that the audit is conducted without bias or conflicts of interest, maintaining the integrity and objectivity of the audit process.
The auditors' responsibilities include obtaining reasonable assurance that the financial statements are free from material misstatement, whether due to fraud or error, and issuing an auditor's report that includes their opinion. They must exercise professional judgment and maintain professional skepticism throughout the audit. This involves identifying and assessing the risks of material misstatement, designing and performing audit procedures responsive to those risks, and evaluating the appropriateness of accounting policies and the reasonableness of significant accounting estimates made by management.
Furthermore, the auditors must gain an understanding of internal control relevant to the audit to design appropriate audit procedures, though they do not express an opinion on the effectiveness of the company's internal control. They are also 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. These measures collectively ensure that the audit is thorough, objective, and conducted with the highest ethical standards, providing stakeholders with reliable and credible financial information.