What ethical requirements must the auditor meet in relation to their audit of Dryject Management, LLC?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
I conducted my audit in accordance with auditing standards generally accepted in the United States of America. My responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of my report. I am required to be independent of DryJect Management, LLC and to meet my other ethical responsibilities in accordance with the relevant ethical requirements relating to my audit. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, the auditor, Koger K. Stein, CPA LLC, must adhere to specific ethical requirements to maintain the integrity and reliability of the financial statements. As stated in the Independent Auditor's Report, the auditor is required to be independent of DryJect Management, LLC. This independence ensures that the auditor's judgment and opinions are unbiased and objective. Additionally, the auditor must meet other ethical responsibilities in accordance with the relevant ethical requirements pertaining to the audit. These standards are based on auditing standards generally accepted in the United States of America.
These ethical responsibilities are crucial for maintaining public trust in the financial reporting process. Independence ensures that the auditor can provide an unbiased assessment of DryJect's financial position, while adherence to ethical requirements ensures that the audit is conducted with integrity and objectivity. This benefits potential franchisees by providing them with confidence in the accuracy and reliability of the financial information presented in the FDD.
The auditor's responsibilities also include exercising professional judgment and maintaining professional skepticism throughout the audit. This involves critically assessing the information provided by DryJect's management and challenging any assumptions or representations that may be questionable. The auditor must also identify and assess the risks of material misstatement in the financial statements, whether due to fraud or error, and design audit procedures to address those risks. These procedures include examining evidence regarding the amounts and disclosures in the financial statements on a test basis.
Furthermore, the auditor must obtain an understanding of DryJect's internal control system to design audit procedures that are appropriate for the circumstances. However, the auditor is not required to express an opinion on the effectiveness of DryJect's internal control. The auditor must also evaluate the appropriateness of the accounting policies used by management and the reasonableness of significant accounting estimates. Finally, the auditor must conclude whether there are conditions or events that raise substantial doubt about DryJect's ability to continue as a going concern.