What ethical responsibilities are the auditors of Endless Summer Sweets required to meet?
Endless_Summer_Sweets Franchise · 2024 FDDAnswer from 2024 FDD Document
accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of Endless Summer Sweets Franchising Inc. 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.
Responsibilities of Management for the Financial Statements
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 Endless Summer Sweets Franchising Inc's ability to continue as a going concern within one year after the date that the financial statements are available to be issued.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards will always detect a
FACT Professional, Inc. P: (818) 703-8410 · F: (818) 691-2922 6800 Owensmouth Ave, Suite 230, Canoga Park, CA 91303 gautam@factprofessional.com · www.factprofessional.com
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material misstatement when it exists.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 38)
What This Means (2024 FDD)
According to Endless Summer Sweets' 2024 Franchise Disclosure Document, the auditors, FACT Professional, Inc., are required to be independent of Endless Summer Sweets Franchising Inc. and to meet their other ethical responsibilities in accordance with the relevant ethical requirements relating to their audits. This means the auditors must maintain objectivity and impartiality to ensure the integrity of the financial statements. They must avoid any conflicts of interest that could compromise their professional judgment.
In performing their audit, FACT Professional, Inc. exercises professional judgment and maintains professional skepticism throughout the audit. They 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. These procedures include examining evidence regarding the amounts and disclosures in the financial statements on a test basis.
Furthermore, the auditors obtain an understanding of internal control relevant to the audit to design appropriate audit procedures, though they do not express an opinion on the effectiveness of Endless Summer Sweets' internal control. They 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. The auditors also conclude whether there are conditions or events that raise substantial doubt about Endless Summer Sweets' ability to continue as a going concern for a reasonable period of time.
FACT Professional, Inc. is required to communicate with those charged with governance regarding the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters identified during the audit. This communication ensures transparency and accountability in the audit process.