What does the Bombs Away FDD say about the sufficiency and appropriateness of the audit evidence obtained?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 35)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, the Independent Accountant Audit Report states an opinion on the company's financial statements. The audit was conducted following generally accepted auditing standards in the United States of America (GAAS). These standards require the auditor to be independent and meet ethical responsibilities related to the audits.
The auditor believes that the audit evidence obtained is sufficient and appropriate to provide a basis for their audit opinion. This suggests that the auditor has gathered enough relevant and reliable evidence to support their conclusions about the fairness of Bombs Away's financial statements.
Furthermore, the auditor's responsibility includes obtaining reasonable assurance about whether the financial statements are free from material misstatement. This involves performing procedures to obtain audit evidence regarding the amounts and disclosures in the financial statements. The selection of these procedures depends on the auditor's judgment and risk assessment. The auditor also evaluates the appropriateness of accounting policies and the reasonableness of significant accounting estimates made by management, as well as the overall presentation of the financial statements.