What ethical responsibilities are the auditors of Best Brains required to meet?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
We conducted our audit 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 Best Brains Inc. 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 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, the auditors must adhere to specific ethical responsibilities while conducting their audit. The auditors are required to be independent of Best Brains and fulfill other ethical requirements that are relevant to their audits, as mandated by auditing standards generally accepted in the United States of America.
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. This involves exercising professional judgment and maintaining professional skepticism throughout the audit process. They must identify and assess the risks of material misstatement in the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks, including examining evidence regarding the amounts and disclosures in the financial statements on a test basis.
Furthermore, the auditors are required to gain an understanding of internal control relevant to the audit to design appropriate audit procedures. However, they do not express an opinion on the effectiveness of Best Brains' internal control. The auditors evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as the overall presentation of the financial statements. They also conclude whether there are conditions or events that raise substantial doubt about Best Brains' ability to continue as a going concern for a reasonable period of time.
Finally, the auditors must 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. This ensures transparency and accountability in the audit process, providing stakeholders with important information about the financial health and stability of Best Brains.