What auditing standards did the auditors use to conduct their audits of Christian Brothers Automotive?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are required to be independent of Christian Brothers Automotive Corporation 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.
Source: Item 23 — RECEIPTS (FDD pages 76–372)
What This Means (2025 FDD)
According to Christian Brothers Automotive's 2025 Franchise Disclosure Document, the company's consolidated financial statements for 2024 and 2023 were audited in accordance with auditing standards generally accepted in the United States of America (GAAS). The auditors' report states that they are responsible for expressing an opinion on the financial statements based on their audit. Their objectives include obtaining reasonable assurance that the financial statements are free from material misstatement, whether due to fraud or error.
The auditors' responsibilities include exercising professional judgment, maintaining professional skepticism, identifying and assessing risks of material misstatement, and evaluating the appropriateness of accounting policies. They also obtain an understanding of internal control relevant to the audit but do not express an opinion on the effectiveness of Christian Brothers Automotive's internal control. The audit procedures involve examining evidence on a test basis regarding the amounts and disclosures in the financial statements.
It is important to note that reasonable assurance is a high level of assurance, but it is not absolute. Therefore, an audit conducted in accordance with GAAS does not guarantee that all material misstatements will be detected. 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, or intentional omissions. The auditors are also required to 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.