What ethical requirements are the auditors of Bhc USA LLC and subsidiaries required to meet?

According to Bhc's 2025 Franchise Disclosure Document, the auditors, CHI & NAM LLP, are required to adhere to specific ethical responsibilities. The audit was conducted following generally accepted auditing standards in the United States. As part of these standards, the auditors are mandated to maintain independence from Bhc USA LLC and its subsidiaries. They must also fulfill other ethical responsibilities as dictated by the relevant ethical requirements pertaining to the audit engagement. This ensures that the audit is conducted with integrity and objectivity.

The auditors' responsibilities include obtaining reasonable assurance that the financial statements are free from material misstatement, whether due to fraud or error. This involves exercising professional judgment and maintaining professional skepticism throughout the audit process. The auditors must identify and assess the risks of material misstatement, design and perform audit procedures responsive to those risks, and evaluate the appropriateness of accounting policies used by Bhc's management. They also need to understand Bhc's internal control mechanisms but are not required to express an opinion on their effectiveness.

Furthermore, the auditors are required to communicate with those charged with governance within Bhc regarding the planned scope and timing of the audit, significant audit findings, and any internal control-related matters identified during the audit. This communication ensures transparency and provides an opportunity for Bhc to address any concerns raised by the auditors. The ultimate goal is to provide an opinion on whether Bhc's financial statements present fairly its financial position, results of operations, and cash flows in accordance with accounting principles generally accepted in the United States of America.