What is the meaning of GAAS in the context of the audit of Crave Cookies?
Crave_Cookies 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 "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.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, GAAS stands for auditing standards generally accepted in the United States of America. The independent auditor's reports state that the audits of Crave Cookies' financial statements were conducted in accordance with GAAS. This means the auditors followed a standardized set of guidelines and procedures to ensure the financial statements are presented fairly and without material misstatements.
The auditor's responsibility under GAAS includes obtaining reasonable assurance that the financial statements are free from material misstatement, whether due to fraud or error. They exercise professional judgment, assess risks, examine evidence, and evaluate the appropriateness of accounting policies. However, GAAS does not guarantee that all misstatements will be detected, especially those resulting from fraud.
For a prospective Crave Cookies franchisee, the reference to GAAS in the audit report provides a level of confidence that the financial statements have been examined by an independent party using established standards. This helps in making informed decisions about investing in a Crave Cookies franchise, as it suggests the financial information has undergone a certain level of scrutiny and adheres to generally accepted practices within the accounting profession.