What auditing standards were followed when auditing the supplementary information for 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)
Based on the 2025 Franchise Disclosure Document, the independent auditor's report states that Christian Brothers Automotive'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 report outlines the responsibilities of both the management and the auditors in relation to these financial statements. Management is responsible for preparing and fairly presenting the consolidated financial statements in accordance with accounting principles generally accepted in the United States of America, including maintaining internal controls.
The auditor's responsibilities include obtaining reasonable assurance that the financial statements are free from material misstatement, whether due to fraud or error, and issuing an auditor's report that includes their opinion. The audit involves exercising professional judgment, assessing risks of material misstatement, understanding internal controls (though not expressing an opinion on their effectiveness), evaluating accounting policies and estimates, and concluding on the company's ability to continue as a going concern. The auditor must also communicate significant findings and internal control matters to those charged with governance.
However, the auditing standards applied to the supplementary information are not explicitly mentioned in this excerpt. The report focuses primarily on the audit of the consolidated financial statements. A prospective franchisee should directly ask Christian Brothers Automotive for clarification on the specific auditing standards used for any supplementary information provided in addition to the core financial statements.