What is the relationship requirement between the auditors and Gokhale Method Institute, Inc.?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
We conducted our audit 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 Gokhale Method Institute, Inc. 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 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to Gokhale Method's 2024 Franchise Disclosure Document, the auditors performing the financial audit of Gokhale Method Institute, Inc. must be independent. Specifically, the auditors are required to be independent of Gokhale Method Institute, Inc. and meet ethical responsibilities based on relevant ethical requirements pertaining to the audit. This requirement ensures that the audit is conducted without bias or conflicts of interest, providing an objective assessment of the company's financial statements.
This independence is a standard practice in financial auditing, ensuring the integrity and reliability of the financial information presented. The auditors' opinion on the financial statements carries more weight when they are known to be free from any influence or relationship that could compromise their judgment. This benefits potential franchisees by providing a more trustworthy view of Gokhale Method's financial health.
The audit is conducted according to generally accepted auditing standards in the United States of America, which further outlines the responsibilities of the auditors. These standards require the auditors to exercise professional judgment and maintain professional skepticism throughout the audit process. They must also identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks.