What ethical requirements are the auditors of Boulder Designs required to meet?

According to Boulder Designs' 2025 Franchise Disclosure Document, the auditors are required to be independent of the company and to meet other ethical responsibilities in accordance with the relevant ethical requirements relating to their audit.

Specifically, the auditors must conduct their audit in accordance with auditing standards generally accepted in the United States of America (GAAS). These standards dictate the responsibilities the auditors have during the audit. The auditors are responsible for expressing an opinion on the financial statements, which includes obtaining reasonable assurance about whether the financial statements are free from material misstatement, whether due to fraud or error.

Furthermore, the auditors must exercise professional judgment and maintain professional skepticism throughout the audit. They must also 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. The auditors are also 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.

These requirements ensure that the audit is conducted with integrity and objectivity, providing a reliable assessment of Boulder Designs' financial statements. This is important for prospective franchisees as it gives them confidence in the financial information provided by Boulder Designs.