During an audit, what level of professional judgment and skepticism is expected when assessing Best Western's financial statements?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
then ended, and the related notes (collectively referred to as the "financial statements").
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company at November 30, 2024 and 2023, and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinion
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 the Company 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 23 — Receipts (FDD pages 108–413)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, the audit of the company's financial statements is conducted in accordance with auditing standards generally accepted in the United States of America (GAAS). The independent auditor's responsibilities under those standards are further described in the "Auditor's Responsibilities for the Audit of the Financial Statements" section of their report.
The auditors are required to be independent of Best Western and to meet other ethical responsibilities in accordance with the relevant ethical requirements relating to their audits. The auditors must obtain sufficient and appropriate audit evidence to provide a basis for their audit opinion.
Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free of material misstatement, whether due to fraud or error. Management is also required to evaluate whether there are conditions or events that raise substantial doubt about the Company's ability to continue as a going concern for one year after the date that the financial statements are available to be issued.