What is the auditor required to communicate to those charged with governance at Dog Haus?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
We have audited the financial statements of Dog Haus Worldwide, LLC (the Company), which comprise the balance sheets as of December 31, 2024 and 2023, and the related statements of operations and members' deficit, and cash flows for the years ended December 31, 2024, 2023 and 2022, and the related notes to the financial statements.
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and the results of its operations and its cash flows for the years ended December 31, 2024, 2023 and 2022 in accordance with accounting principles generally accepted in the United States of America.
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 Auditors' 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.
Management is responsible for the preparation and fair presentation of the financial statements 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 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 within one year after the date that the financial statements are available to be issued.
Source: Item 23 — RECEIPTS (FDD pages 87–328)
What This Means (2025 FDD)
Based on the 2025 Dog Haus Franchise Disclosure Document, the excerpt provided includes the Independent Auditors' Report but does not specify what the auditor is required to communicate to those charged with governance. The report outlines the auditor's opinion on the financial statements of Dog Haus Worldwide, LLC, their responsibilities, and management's responsibilities regarding the financial statements. It confirms that the audit was conducted following generally accepted auditing standards in the United States.
However, the excerpt focuses on the audit process and responsibilities rather than detailing the specific communications required between the auditor and those in governance roles within Dog Haus. This is a common practice in audit reports, which primarily aim to present the auditor's opinion and the basis for that opinion.
A prospective franchisee should ask Dog Haus for more information about the specific communications that the auditor has with those charged with governance. Understanding the nature and frequency of these communications can provide insight into the financial oversight and risk management practices within the Dog Haus organization.