What is the auditor's responsibility regarding Bb.Q Chicken's financial statements?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatements.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company's preparation and fair presentation of the financial statements 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 the Company's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
Source: Item 23 — RECEIPTS (FDD pages 62–283)
What This Means (2025 FDD)
According to Bb.Q Chicken's 2025 Franchise Disclosure Document, the auditor's responsibility is to express an opinion on the financial statements based on their audit. The audit is conducted following auditing standards generally accepted in the United States of America, which require the auditor to plan and perform the audit to obtain reasonable assurance that the financial statements are free from material misstatements. This process ensures a level of confidence in the accuracy and reliability of the financial information presented.
The audit involves procedures to gather evidence about the amounts and disclosures in the financial statements. The selection of these procedures is based on the auditor's judgment, including an assessment of the risks of material misstatement, whether due to fraud or error. The auditor considers internal controls relevant to Bb.Q Chicken's preparation and fair presentation of the financial statements to design appropriate audit procedures, but the audit does not aim to express an opinion on the effectiveness of the company's internal control.
Furthermore, the audit includes evaluating the appropriateness of the accounting policies used, the reasonableness of significant accounting estimates made by management, and the overall presentation of the financial statements. This comprehensive approach is intended to provide a thorough review and assessment of the financial information, giving stakeholders a reliable basis for making informed decisions about Bb.Q Chicken.