According to the auditors, what standards were followed during the Buona audit?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Our responsibilities under those standards are further described in the Auditors' 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 audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the company's financial statements were audited in accordance with auditing standards generally accepted in the United States of America. The auditors' report indicates that they are responsible for expressing an opinion on the financial statements based on their audit.
The auditors' responsibilities include obtaining reasonable assurance about whether the financial statements are free from material misstatement, whether due to fraud or error. They also outline the procedures they undertake to achieve this, such as exercising professional judgment, assessing risks, examining evidence, understanding internal control, and evaluating accounting policies. These standards are put in place to ensure accuracy and reliability in financial reporting.
Prospective Buona franchisees should understand that these auditing standards provide a level of confidence in the financial information presented. However, it's important to note that reasonable assurance is not absolute, and there's always a risk that material misstatements may not be detected. Franchisees may want to consult with their own financial advisors to further assess the financial health and stability of Buona.