What is the auditor required to exercise throughout the audit of Carbones Pizzeria's financial statements?
Carbones_Pizzeria 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 Auditor's Responsibilities for the Audit of the consolidated 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 30)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 Franchise Disclosure Document, the auditor, DNJ & Associates, is required to be independent of the company, M & T Pizza Incorporated and Subsidiaries, and to meet other ethical responsibilities in accordance with relevant ethical requirements relating to the audit. The auditor's report states that the audit was conducted in accordance with auditing standards generally accepted in the United States of America.
The auditor's responsibilities include describing the responsibilities of the auditor for the audit of the consolidated financial statements. The auditor must also obtain audit evidence that is sufficient and appropriate to provide a basis for the audit opinion.
This means that DNJ & Associates must maintain impartiality and objectivity throughout the audit process. They must also adhere to the ethical guidelines set forth by the accounting profession. This ensures that the financial statements are audited with integrity and that the auditor's opinion is unbiased and reliable.