What ethical requirements are the auditors of C12 Group required to meet?

According to the 2025 FDD, the auditors of C12 Group must adhere to specific ethical requirements. The Independent Auditor's Report states that the audits are conducted in accordance with auditing standards generally accepted in the United States of America. As part of these standards, the auditors are explicitly required to be independent of C12 Group and to fulfill other ethical responsibilities in accordance with the relevant ethical requirements pertaining to their audits.

This requirement ensures that the auditors maintain objectivity and impartiality when examining C12 Group's financial statements. Independence is crucial for providing stakeholders, including potential franchisees, with confidence in the reliability and credibility of the financial information presented in the FDD. The auditors must avoid any conflicts of interest or relationships that could compromise their professional judgment.

The ethical responsibilities mentioned encompass a broader range of conduct beyond just independence. These responsibilities are defined by the accounting profession's code of ethics and regulatory bodies, ensuring that auditors act with integrity, objectivity, and due professional care. By adhering to these ethical standards, the auditors contribute to the overall transparency and trustworthiness of C12 Group's financial reporting.

Prospective franchisees of C12 Group can take assurance from the fact that the company's financial statements are audited by independent professionals who are bound by strict ethical requirements. This helps mitigate the risk of financial misrepresentation and provides a more reliable basis for making informed investment decisions.