What ethical responsibilities are the auditors of Buildingstars required to meet?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
aries as of December 31, 2024, 2023 and 2022, and the results of their operations and their cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinion
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 Buildingstars International, Inc. and Subsidiaries, 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.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about Buildingstars International, Inc.'s ability to continue as a going concern within one year after the date that the financial statements are available to be issued.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards will always detect a material misstatement when it exists.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 34–43)
What This Means (2025 FDD)
According to Buildingstars' 2025 Franchise Disclosure Document, the auditors must adhere to specific ethical responsibilities to maintain the integrity of the audit. The auditors are required to be independent of Buildingstars International, Inc. and its subsidiaries. They must also meet other ethical responsibilities in accordance with the relevant ethical requirements pertaining to their audits. These standards are based on auditing standards generally accepted in the United States of America.
In practical terms, this means the auditors cannot have any financial or personal relationships with Buildingstars that could compromise their objectivity. The auditors' ethical obligations ensure they perform their duties with impartiality and integrity, providing a reliable assessment of Buildingstars' financial statements. This independence is crucial for prospective franchisees, as it assures them that the financial information presented by Buildingstars has been reviewed by an unbiased third party.
Furthermore, the auditors must exercise professional judgment and maintain professional skepticism throughout the audit. They are also obligated to identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. The auditors must also 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 responsibilities ensure that the audit is thorough, and any potential issues are properly addressed and communicated.