What is the auditor's responsibility in evaluating the appropriateness of accounting policies used by Dryject Management, LLC?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
In performing an audit in accordance with generally accepted auditing standards, I:
- Exercise professional judgment and maintain professional skepticism throughout the audit.
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of DryJect Management, LLC's internal control. Accordingly, no such opinion is expressed.
- Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
- Conclude whether, in my judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about Dry Ject Management, LLC's ability to continue as a going concern for a reasonable period of time.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, the auditor's responsibility includes evaluating the appropriateness of the accounting policies used by Dryject Management, LLC. This evaluation is part of a broader audit conducted in accordance with generally accepted auditing standards. The auditor also assesses the reasonableness of significant accounting estimates made by management and evaluates the overall presentation of the financial statements.
The auditor's objective is to obtain reasonable assurance that the financial statements are free from material misstatement, whether due to fraud or error. However, this assurance is not absolute, and there's a risk that material misstatements, especially those resulting from fraud, may not be detected. The auditor exercises professional judgment and maintains professional skepticism throughout the audit to identify and assess risks of material misstatement.
For a prospective Dryject franchisee, this means that the financial statements have been examined by an independent auditor who has assessed whether the accounting policies used are appropriate and reasonable. This provides a level of confidence in the financial information presented. Franchisees should still carefully review the financial statements and consider seeking their own professional financial advice.