What must be evaluated regarding accounting policies used by Cream?

According to Cream's 2025 Franchise Disclosure Document, the auditor must evaluate the appropriateness of the accounting policies used by Cream's management. Additionally, the auditor must assess the reasonableness of significant accounting estimates made by management and evaluate the overall presentation of the financial statement. This evaluation is part of the auditor's responsibility to provide an opinion on whether the financial statements present fairly the financial position of Cream.

This means that a prospective Cream franchisee can have some assurance that Cream's financial statements have been reviewed by an independent auditor who has considered whether the accounting policies are appropriate and reasonable. This helps ensure that the financial information provided by Cream is reliable and accurate.

However, it is important to note that the auditor's assurance is not absolute. The audit is designed to provide reasonable assurance that the financial statements are free from material misstatement, but it is not a guarantee. The auditor's report explicitly states that it is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement.