Is the auditing firm required to be independent of Fly To Fit during the audit?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
We conducted our audit 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.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 44)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, the auditing firm is required to be independent. The audit report states that the audit was conducted in accordance with auditing standards generally accepted in the United States of America (GAAS). As part of these standards, the auditing firm is required to be independent of Fly To Fit and to meet other ethical responsibilities in accordance with relevant ethical requirements. The auditor's report also mentions that the auditors believe that the audit evidence they have obtained is sufficient and appropriate to provide a basis for their audit opinion.
This independence is crucial for ensuring the credibility and reliability of the financial statements. It assures potential franchisees that the financial information presented by Fly To Fit has been reviewed by an impartial third party. This helps to mitigate the risk of misrepresented or misleading financial data, which could impact a franchisee's investment decision.
The audit report included in Item 21 of the FDD is from Omar Alnuaimi, CPA, located in Naperville, IL. The report is addressed to the management of Fly To Fit Franchise, LLC, and includes an opinion that the financial statements present fairly the financial position of the company as of April 15, 2024. The report is dated April 30, 2024.