What ethical responsibilities are the auditors of Cream required to meet?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
Statement | 4-5 |
Suite 300 2601 Cambridge Court Auburn Hills, MI 48326 Tel: 248.375.7100 Fax: 248.375.7101 plantemoran.com
Independent Auditor's Report
To the Member Jeni's Splendid Ice Creams Franchise, LLC
Opinion
We have audited the financial statement of Jeni's Splendid Ice Creams Franchise, LLC (the "Company"), which comprises the balance sheet as of May 29, 2025, and the related notes to the financial statement.
In our opinion, the accompanying financial statement presents fairly, in all material respects, the financial position of the Company as of May 29, 2025 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 Statement section of our report. We are required to be independent of the Company and to meet our 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 Statement
Management is responsible for the preparation and fair presentation of the financial statement 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 a financial statement that is free from material misstatement, whether due to fraud or error.
In preparing the financial statement, 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 within one year after the date that the financial statement is issued or available to be issued.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to the 2025 FDD, the auditors of Jeni's Splendid Ice Creams Franchise, LLC, must adhere to specific ethical responsibilities as part of their audit. The auditors are required to be independent of the company and meet ethical responsibilities based on the relevant ethical requirements that pertain to their audit. This ensures that the audit is conducted with integrity and objectivity. The auditors must also obtain sufficient and appropriate audit evidence to provide a basis for their opinion on the financial statements. This indicates that the auditors must gather enough reliable information to support their conclusions about the fairness of the company's financial presentation.
In performing their audit, the auditors must exercise professional judgment and maintain professional skepticism throughout the process. This means they need to critically assess the information provided and remain alert to potential misstatements, whether due to fraud or error. They are also required to identify and assess the risks of material misstatement in the financial statements and design audit procedures that respond to these risks. This involves examining evidence related to the amounts and disclosures in the financial statements on a test basis.
Furthermore, the auditors must obtain an understanding of the company's internal control system to design appropriate audit procedures. However, the purpose is not to express an opinion on the effectiveness of the internal control system itself. The auditors also evaluate the appropriateness of the accounting policies used and the reasonableness of significant accounting estimates made by management, as well as the overall presentation of the financial statements. Finally, the auditors are required to communicate with those charged with governance regarding the scope and timing of the audit, significant audit findings, and certain internal control-related matters identified during the audit.