Where in the Bombs Away audit report are the auditor's responsibilities further described?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
ples 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 audits. 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 of 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.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free of material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
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- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 35)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, the auditor's responsibilities are further described in the "Auditor's Responsibilities for the Audit of the Financial Statements" section of the audit report. This section outlines the objectives of the audit, which include obtaining reasonable assurance about whether the financial statements are free of material misstatement, whether due to fraud or error, and issuing an auditor's report that includes their opinion. It clarifies that while reasonable assurance is a high level of assurance, it is not absolute and doesn't guarantee the detection of all material misstatements. The report also notes that the risk of not detecting a material misstatement resulting from fraud is higher than that of error.
The audit, conducted in accordance with Generally Accepted Auditing Standards (GAAS), involves exercising professional judgment and maintaining professional skepticism. The auditor identifies and assesses the risks of material misstatement, designs and performs audit procedures responsive to those risks, and examines evidence regarding the amounts and disclosures in the financial statements on a test basis. They also obtain an understanding of internal control relevant to the audit to design appropriate procedures, though not for the purpose of expressing an opinion on the effectiveness of the company's internal control.
Furthermore, the auditor evaluates the appropriateness of accounting policies used, the reasonableness of significant accounting estimates made by management, and the overall presentation of the financial statements. They also conclude whether there are conditions or events that raise substantial doubt about Bombs Away's ability to continue as a going concern. The auditor is required to communicate with those charged with governance regarding the scope and timing of the audit, significant audit findings, and certain internal control-related matters identified during the audit. This comprehensive approach ensures that the financial statements provide a fair and reliable representation of Bombs Away's financial position and performance.