What ethical responsibilities are the auditors required to meet during the Eos Worldwide audit?
Eos_Worldwide Franchise · 2025 FDDAnswer from 2025 FDD Document
, 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 then ended in accordance with 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 (GAAS). 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 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.
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 the Company's ability to continue as a going concern within one year after the date that the financial statements are issued or 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.
Source: Item 22 — CONTRACTS (FDD page 74)
What This Means (2025 FDD)
According to the 2025 Eos Worldwide Franchise Disclosure Document, the auditors, RSM US LLP, are required to be independent of the company and to meet other ethical responsibilities in accordance with relevant ethical requirements relating to their audits. This ensures that the audit is conducted with integrity and objectivity. The auditors must exercise professional judgment and maintain professional skepticism throughout the audit, which means they should have a questioning mind and critically assess the audit evidence.
Specifically, the auditors' responsibilities include identifying and assessing the risks of material misstatement of the financial statements, whether due to fraud or error. They design and perform audit procedures responsive to those risks, including examining evidence regarding the amounts and disclosures in the financial statements on a test basis. The auditors also 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 the company's internal control.
Furthermore, the auditors 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. They also conclude whether there are conditions or events that raise substantial doubt about Eos Worldwide's ability to continue as a going concern for a reasonable period. The auditors are 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.
For a prospective Eos Worldwide franchisee, this indicates that the financial statements have been examined by an independent party who is bound by ethical and professional standards. This provides a level of assurance that the financial information presented by Eos Worldwide is fairly stated and reliable, which can be important for making informed investment decisions. Franchisees can take comfort in knowing that the audit process is designed to detect material misstatements, whether due to fraud or error, and that the auditors have a responsibility to maintain independence and objectivity.