What ethical responsibilities are the auditors required to meet in relation to their audits of Dog Haus?
Dog_Haus 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 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.
Source: Item 23 — RECEIPTS (FDD pages 87–328)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, the auditors performing the financial audits are required to adhere to specific ethical responsibilities. The auditors must be independent of the company, meaning they should not have any financial or personal relationships that could compromise their objectivity. Additionally, they are expected to meet other ethical requirements in accordance with the relevant ethical standards applicable to their audits. These standards are based on auditing standards generally accepted in the United States of America (GAAS).
This requirement ensures that the audit is conducted with integrity and impartiality, providing a reliable assessment of Dog Haus's financial statements. Independence is a cornerstone of auditing, as it assures potential franchisees and other stakeholders that the financial information presented is free from bias and accurately reflects the company's financial position.
The auditors' report explicitly states that they believe the audit evidence obtained is sufficient and appropriate to provide a basis for their audit opinion. This declaration reinforces the credibility of the audit and offers assurance to prospective Dog Haus franchisees that the financial statements have been thoroughly examined and fairly represent the company's financial status. This level of scrutiny is typical for franchise systems, as it provides transparency and builds trust with potential investors.