What must the auditor evaluate regarding accounting policies used by Bw Premier Collection?
Bw_Premier_Collection Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — Receipts (FDD pages 54–203)
What This Means (2025 FDD)
According to Bw Premier Collection's 2025 Franchise Disclosure Document, the auditor is responsible for evaluating the appropriateness of the accounting policies used by management in the preparation of the financial statements. This evaluation is part of a broader audit process aimed at obtaining reasonable assurance that the financial statements are free of material misstatement, whether due to fraud or error. The auditor must also assess the reasonableness of significant accounting estimates made by management and evaluate the overall presentation of the financial statements.
In performing this evaluation, the auditor exercises professional judgment and maintains professional skepticism throughout the audit. This involves identifying and assessing the risks of material misstatement, designing and performing audit procedures responsive to those risks, and obtaining an understanding of internal control relevant to the audit. However, the auditor's objective is not to express an opinion on the effectiveness of the company's internal control.
The auditor's evaluation extends to concluding whether there are conditions or events that raise substantial doubt about Bw Premier Collection's ability to continue as a going concern for a reasonable period of time. The auditor must 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.