What does the audit of Bw Premier Collection include in terms of examining evidence?
Bw_Premier_Collection Franchise · 2025 FDDAnswer from 2025 FDD Document
reasonable user based on the financial statements.
In performing an audit in accordance with GAAS, we:
- Exercise professional judgment and maintain professional skepticism throughout the audit.
- 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. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
- Obtain an understanding of internal control relevant to the audit 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 Company's internal control. Accordingly, no such opinion is expressed.
- Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
Report of Independent Auditors
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
Source: Item 23 — Receipts (FDD pages 54–203)
What This Means (2025 FDD)
According to Bw Premier Collection's 2025 Franchise Disclosure Document, the audit of the financial statements includes examining evidence regarding the amounts and disclosures in the financial statements on a test basis. This is part of the auditor's responsibility to obtain reasonable assurance that the financial statements are free of material misstatement, whether due to fraud or error, and to issue an auditor's report that includes their opinion.
The audit is conducted in accordance with auditing standards generally accepted in the United States of America (GAAS). The auditor's procedures are responsive to the risks of material misstatement and include obtaining an understanding of internal control relevant to the audit. However, the purpose is not to express an opinion on the effectiveness of the company's internal control.
In addition to examining evidence, the audit also involves evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management. The auditor also evaluates the overall presentation of the financial statements and concludes whether there are conditions or events that raise substantial doubt about the company's ability to continue as a going concern. The auditor is required to communicate with those charged with governance regarding the scope and timing of the audit, significant audit findings, and certain internal control-related matters.