What ethical responsibilities are the auditors of Body Brain Center, LLC required to meet?
Body_Brain_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
which comprise the balance sheet as of December 31, 2024 and 2023, and the related statement of income, changes in member's equity, and cash flows for the years then ended, as well as the related notes to the financial statements. In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of Body and Brain Center, LLC as of December 31, 2024 and 2023, and the results of its operations and its cash flows for the years then ended in accordance with accounts principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audit 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 audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Responsibilities of Management for the Financial Statements
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 from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events considered in the aggregate 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.
Source: Item 23 — RECEIPT (FDD pages 43–178)
What This Means (2025 FDD)
According to Body Brain Center's 2025 Franchise Disclosure Document, the auditors, ABC CPAs, are required to adhere to specific ethical responsibilities. As stated in the Independent Auditor's Report, ABC CPAs must be independent of Body Brain Center and fulfill other ethical duties in accordance with the relevant ethical requirements pertaining to their audits. This ensures that the audit is conducted without bias or conflicts of interest, maintaining the integrity of the financial statements.
Furthermore, the auditors' responsibilities include exercising professional judgment and maintaining professional skepticism throughout the audit. They must identify and assess the risks of material misstatement in the financial statements, whether due to fraud or error, and design audit procedures to respond to these risks. This involves examining evidence related to the amounts and disclosures in the financial statements on a test basis.
Additionally, the auditors must obtain an understanding of internal control relevant to the audit to design appropriate audit procedures, although they do not express an opinion on the effectiveness of Body Brain Center's internal control. They 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. The auditors also conclude on whether there are conditions or events that raise substantial doubt about Body Brain Center's ability to continue as a going concern.
Finally, ABC CPAs are required to 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 communication ensures transparency and provides stakeholders with important information about the audit process and its findings.