Does the Bombs Away FDD state that the auditors are required to be independent of the company?
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 that the auditors are required to be independent of the company. Specifically, in the Basis for Opinion section, it mentions the auditor's responsibilities under generally accepted auditing standards in the United States of America (GAAS). It explicitly states that the auditors are required to be independent of Bombs Away and must meet ethical responsibilities according to relevant ethical requirements. The audit evidence obtained is considered sufficient and appropriate to provide a basis for the audit opinion.
This declaration of independence is a standard practice in financial auditing. It assures prospective franchisees that the financial statements have been reviewed by an impartial third party. This helps to ensure that the financial information presented by Bombs Away is reliable and free from material misstatements.
For a potential Bombs Away franchisee, this provides a level of confidence in the financial health and reporting practices of the franchisor. Knowing that an independent auditor has reviewed the financial statements and is bound by ethical requirements to remain independent helps mitigate the risk of relying on potentially biased financial information.