What auditing standards were used in the audit of Closet Storage Concepts' financial statements?
Closet_Storage_Concepts 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 Financial Statements section of our report. We are required to be independent of Closets Unlimited of New Jersey, Inc. 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.
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 from 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 Closets Unlimited of New Jersey, Inc.'s ability to continue as a going concern within one year after the date that the financial statements are available to be issued.
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Auditor's Responsibilities for the Audit of the Financial Statements
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 59)
What This Means (2025 FDD)
According to Closet Storage Concepts' 2025 Franchise Disclosure Document, the company's financial statements were audited in accordance with auditing standards generally accepted in the United States of America. The auditor's report states that their responsibilities under these standards are detailed in the 'Auditor's Responsibilities for the Audit of the Financial Statements' section.
The auditor's objectives include obtaining reasonable assurance that the financial statements are free from material misstatement, whether due to fraud or error, and issuing a report that includes their opinion. While reasonable assurance is a high level of assurance, it is not absolute, and there is no guarantee that an audit will always detect a material misstatement.
The auditing procedures involve exercising professional judgment, maintaining professional skepticism, assessing the risks of material misstatement, examining evidence on a test basis, understanding internal control, evaluating accounting policies, and assessing the overall presentation of the financial statements. The auditor is also required to communicate with those charged with governance regarding the audit's scope, timing, significant findings, and internal control matters.