What auditing standards were used as the basis for the audit of Bambu Franchising, LLC's financial statements?

According to Bambu's 2025 Franchise Disclosure Document, the financial statements of Bambu Franchising, LLC were audited in accordance with auditing standards generally accepted in the United States of America (GAAS). This means that the independent auditor followed a set of established guidelines and principles to ensure the fairness and accuracy of the financial statements. These standards dictate the procedures and practices the auditor must adhere to during the audit process.

The auditor's responsibilities under GAAS include obtaining reasonable assurance that the financial statements are free from material misstatement, whether due to fraud or error. This involves exercising professional judgment, maintaining skepticism, assessing risks, and examining evidence to support the amounts and disclosures in the financial statements. The auditor also evaluates the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by Bambu's management.

It is important to note that while GAAS provides a high level of assurance, it is not an absolute guarantee that all misstatements will be detected. The auditor's report includes an opinion on whether the financial statements present fairly Bambu's financial position, results of operations, and cash flows in accordance with accounting principles generally accepted in the United States of America (GAAP). This opinion provides potential franchisees with confidence that the financial statements have been subjected to an independent and objective examination.

Prospective franchisees should understand that the audit was conducted to provide an opinion on the financial statements, not to express an opinion on the effectiveness of Bambu's internal control. Therefore, while the audit provides assurance about the accuracy of the financial statements, it does not guarantee the absence of internal control weaknesses.