Is the auditing firm required to be independent of Rayyan Pizza Franchise LLC when auditing the financial statements related to the Aw franchise?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS). 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 Rayyan Pizza Franchise LLC, 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 39)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, the auditing firm, Muhammad Zubairy, CPA PC, is required to be independent of Rayyan Pizza Franchise LLC. This requirement is explicitly stated in the Independent Auditor's Report included in the financial statements for the fiscal years 2024 and 2023.
The auditor's independence is a critical component of ensuring the credibility and reliability of the financial statements. It means that the auditor must not have any financial, personal, or professional relationships with Rayyan Pizza Franchise LLC that could compromise their objectivity. This independence allows the auditor to perform an unbiased assessment of the company's financial position, results of operations, and cash flows.
The report states that the audits were conducted in accordance with auditing standards generally accepted in the United States of America (GAAS), which further emphasizes the importance of adhering to ethical requirements, including independence. This declaration provides assurance to potential Aw franchisees that the financial information presented has been reviewed by an impartial and qualified professional, enhancing the trustworthiness of the financial statements.