When auditing Floors To Go, is it required to maintain professional skepticism?

According to Floors To Go's 2025 Franchise Disclosure Document, auditors are required to maintain professional skepticism throughout the audit process. This requirement is part of adhering to generally accepted auditing standards. The auditor's objectives include obtaining reasonable assurance that the financial statements are free from material misstatement, whether due to fraud or error, and issuing an auditor's report that includes their opinion.

Maintaining professional skepticism means that the auditors must have a questioning mind and critically assess the audit evidence. They should not assume that management is either dishonest or honest but need to evaluate the information presented to them with scrutiny. This approach helps to identify and assess the risks of material misstatement in the financial statements, whether these misstatements are due to fraud or error.

For a prospective Floors To Go franchisee, this indicates that the franchisor's financial statements are subject to a rigorous audit process. The requirement for auditors to maintain professional skepticism provides a degree of confidence that the financial information presented by Floors To Go is reasonably accurate and reliable. This can be reassuring for franchisees who rely on the franchisor's financial statements to make informed business decisions.