What is the auditor required to be independent of when auditing Bor Restoration?
Bor_Restoration Franchise · 2024 FDDAnswer from 2024 FDD Document
We conducted our audits in accordance with auditing standards generally accepted in the United States of America. 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 opinion.
Source: Item 23 — Receipts (FDD pages 40–202)
What This Means (2024 FDD)
According to Bor Restoration's 2024 Franchise Disclosure Document, the auditor must be independent of the company, BOR Franchising, LLC. This requirement ensures that the audit is conducted with objectivity and integrity. The auditor must also meet ethical responsibilities based on relevant ethical requirements.
This independence is crucial for providing an unbiased opinion on the financial statements of Bor Restoration. The auditor's role is to assess whether the financial statements present a fair view of the company's financial position, results of operations, and cash flows, in accordance with accounting principles generally accepted in the United States of America.
The auditor's report expresses an opinion on whether the financial statements are presented fairly in all material respects. This opinion is based on audit evidence obtained, which the auditor believes is sufficient and appropriate to provide a basis for their opinion. The independence requirement helps to maintain the credibility of the audit and the reliability of the financial information provided to potential franchisees and other stakeholders.