What ethical responsibilities are the auditors of Crave required to meet?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
results of its operations and its cash flows for the year ended December 31, 2024, in accordance with accounting principles generally 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 these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes 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 the Company's ability to continue as a going concern for one year after March 24, 2025.
Auditors' 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 from material misstatement, whether due to fraud or error, and to issue and auditors' report that includes our opinion.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the auditors who review Crave's financial statements must adhere to specific ethical responsibilities as part of their audit process. These responsibilities are based on auditing standards generally accepted in the United States of America (GAAS).
The auditors are required to maintain independence from Crave and fulfill other ethical duties in line with the relevant ethical requirements that pertain to their audits. This independence ensures that the auditors can perform their work without bias or undue influence from the company being audited. The auditors must also obtain sufficient and appropriate audit evidence to provide a reasonable foundation for their opinion on the financial statements.
Furthermore, the auditors must exercise professional judgment and maintain professional skepticism throughout the audits. They are tasked with identifying and assessing the risks of material misstatement in the financial statements, whether due to fraud or error, and designing audit procedures that respond to these risks. The auditors also evaluate the appropriateness of the accounting policies used and the reasonableness of significant accounting estimates made by Crave's management, as well as the overall presentation of the financial statements. These measures ensure that the financial statements are fairly presented and free from material misstatements.
Finally, the auditors are required to communicate with those charged with governance regarding the planned scope and timing of the audits, significant audit findings, and certain internal control-related matters identified during the audits. This communication ensures transparency and provides an opportunity for those in governance to address any concerns or issues raised by the auditors.