According to the Dermani Medspa audit, what auditing standards were followed?

According to Dermani Medspa's 2025 Franchise Disclosure Document, the company's financial statements were audited in accordance with auditing standards generally accepted in the United States of America (GAAS). This indicates that the independent auditor, Nichols, Cauley & Associates, LLC, followed GAAS guidelines during their audit of Dermani Medspa's financial statements for the year ending December 31, 2023.

The auditor's report states that their responsibilities under GAAS are further described in the section of the report dedicated to the Auditor's Responsibilities for the Audit of the Financial Statements. The auditor is required to be independent of Dermani Medspa and to meet ethical responsibilities relevant to the audit. The auditor also states a belief that the audit evidence obtained is sufficient and appropriate to provide a basis for their audit opinion.

This adherence to GAAS provides a level of assurance to potential Dermani Medspa franchisees that the financial statements have been examined by an independent party using established and recognized auditing standards. It also means the auditor exercised professional judgment, assessed risks of material misstatement, understood internal controls (though without expressing an opinion on their effectiveness), evaluated accounting policies, and considered Dermani Medspa's ability to continue as a going concern.