What kind of evidence is required for the audit opinion for Care Plus Medical Ucc?
Care_Plus_Medical_Ucc Franchise · 2024 FDDAnswer from 2024 FDD Document
ally accepted in the United States of America.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditor's 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 audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free of material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether 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 one year after the date that the financial statements are available to be issued.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free of material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 41)
What This Means (2024 FDD)
According to the 2024 Franchise Disclosure Document, the audit of Care Plus Medical Ucc's financial statements was conducted following auditing standards generally accepted in the United States of America (GAAS). The auditor's report states that the audit evidence obtained was considered sufficient and appropriate to provide a basis for the audit opinion. This indicates that the auditor, Omar Alnuaimi, CPA, believed they had gathered enough reliable evidence to support their conclusions about the fairness of the company's financial statements. The audit included examining evidence regarding the amounts and disclosures in the financial statements on a test basis.
The auditor's responsibilities included exercising professional judgment and maintaining professional skepticism throughout the audit, identifying and assessing the risks of material misstatement of the financial statements, and obtaining an understanding of internal control relevant to the audit. They also evaluated the appropriateness of accounting policies used, the reasonableness of significant accounting estimates made by management, and the overall presentation of the financial statements. The auditor's objective was to obtain reasonable assurance that the financial statements as a whole were free of material misstatement, whether due to fraud or error, and to issue an auditor's report that includes their opinion.
For a prospective Care Plus Medical Ucc franchisee, this means that the financial statements included in the FDD have been independently audited, providing a degree of assurance about their reliability. However, it's important to note that reasonable assurance is not absolute, and there is always a risk that a material misstatement could go undetected. The audit provides an opinion on whether the financial statements present fairly the financial position of Care Plus Medical Ucc as of December 31, 2023, and the results of its operations and its cash flows for the period then ended, in accordance with accounting principles generally accepted in the United States of America.