What is the auditor's responsibility regarding Bumper Man's financial statements?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with U.S. generally accepted auditing standards. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, I express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.
Opinion
In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Bumper Man, Inc. as of December 31, 2024, 2023 and 2022, and the results of its operations and its cash flows for the years then ended in accordance with U.S. generally accepted accounting principles.
My audit was conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The information included in the accompanying schedule contained on page 10 is presented only for supplementary analysis purposes and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in my opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.
Kyle E. Patton, C.P.A. February 24, 2025
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to Bumper Man's 2025 Franchise Disclosure Document, the auditor, Kyle E. Patton, CPA, LLC, has specific responsibilities regarding the company's financial statements. The auditor's primary responsibility is to express an opinion on the financial statements based on their audit. This includes the balance sheets as of December 31, 2024, 2023, and 2022, as well as the related statements of income, retained earnings, and cash flows for the corresponding years. The auditor conducts the audit in accordance with U.S. generally accepted auditing standards to obtain reasonable assurance that the financial statements are free from material misstatement.
The auditing standards require the auditor to plan and perform the audit to assess the risks of material misstatement, whether due to fraud or error. As part of the risk assessment, the auditor considers Bumper Man's internal control relevant to the preparation and fair presentation of the financial statements. However, the auditor's procedures are not for the purpose of expressing an opinion on the effectiveness of the entity's internal control, and the auditor explicitly states that no such opinion is expressed. The audit also involves evaluating the appropriateness of accounting policies used, the reasonableness of significant accounting estimates made by management, and the overall presentation of the financial statements.
The auditor's opinion, dated February 24, 2025, states that the financial statements present fairly, in all material respects, the financial position of Bumper Man, Inc. as of December 31, 2024, 2023, and 2022, and the results of its operations and its cash flows for the years then ended, in accordance with U.S. generally accepted accounting principles. Additionally, the auditor states that the supplementary information included in the accompanying schedule has been subjected to auditing procedures and is fairly stated in all material respects in relation to the basic financial statements taken as a whole. This provides assurance to potential franchisees that the financial statements have been reviewed by an independent party and found to be fairly presented.