What standard does the audit of Even Hotels' consolidated financial statements adhere to?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (US GAAS). Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Consolidated 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 audit. 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 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, the audit of Six Continents Hotels, Inc., which includes Even Hotels, was conducted following auditing standards generally accepted in the United States of America (US GAAS). This means that the independent auditors followed a consistent and recognized set of guidelines and procedures when examining the company's financial statements.
The auditors' responsibilities under US GAAS include obtaining reasonable assurance that the financial statements are free from material misstatement, whether due to fraud or error. They exercise professional judgment, assess risks, examine evidence on a test basis, and evaluate the appropriateness of accounting policies and the reasonableness of management's estimates. The goal is to provide an opinion on whether the financial statements present fairly the company's financial position and results of operations.
For a prospective Even Hotels franchisee, this indicates that the financial statements have been reviewed by an independent party using established and trusted standards. While it doesn't guarantee the complete absence of errors or fraud, it does provide a level of confidence that the financial information is presented fairly and in accordance with generally accepted accounting principles. This is a common practice in franchising, as audited financial statements offer greater transparency and reliability for potential investors.