What ethical requirements are the auditors of Exit required to meet?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
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 Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of EXIT Realty Corp. International 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.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the auditors are required to be independent of Exit Realty Corp. International. They must also meet other ethical responsibilities in accordance with the relevant ethical requirements relating to their audits.
This requirement ensures that the audit is conducted with integrity and objectivity. Independence is a cornerstone of auditing, preventing conflicts of interest that could compromise the accuracy and reliability of the financial statements. By adhering to ethical standards, the auditors provide assurance to franchisees and other stakeholders that the financial information is trustworthy.
For a prospective Exit franchisee, this means that the financial statements of Exit are audited by an independent firm that is ethically bound to provide an unbiased opinion. This can provide a level of comfort regarding the financial health and stability of the company. Franchisees rely on accurate financial reporting to make informed decisions about their investment and the overall viability of the franchise system.