What auditing standards were used in the audit of the Brain Balance financial statements?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
We conducted our audits 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 Audits of the Financial Statements section of our report. We are required to be independent of the Company and to meet our 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 23 — RECEIPTS (FDD pages 72–292)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, the financial statements of BB Franchising, LLC were audited in accordance with auditing standards generally accepted in the United States of America (GAAS). The auditor's report included an opinion that the financial statements present fairly the financial position of the company as of December 31, 2024, 2023, and 2022, and the results of its operations and cash flows for those years, in accordance with accounting principles generally accepted in the United States of America.
The auditor's responsibilities under GAAS include obtaining reasonable assurance about whether the financial statements are free from material misstatement, whether due to fraud or error, and issuing an auditor's report that includes their opinion. However, reasonable assurance is not absolute, and there is a risk that a material misstatement may not be detected, especially one resulting from fraud.
The auditor's responsibilities also include exercising professional judgment, assessing the risks of material misstatement, obtaining an understanding of internal control, evaluating the appropriateness of accounting policies, and concluding whether there are conditions that raise substantial doubt about the company's ability to continue as a going concern. They are also required to communicate with those charged with governance regarding the planned scope and timing of the audits, significant audit findings, and certain internal control-related matters.