What does the audit evidence obtained need to be to provide a basis for the audit opinion on Healthsource Chiropractic?

According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, the audit evidence obtained by the independent auditor must be sufficient and appropriate to provide a basis for their audit opinion. The auditors must conduct their audits in accordance with auditing standards generally accepted in the United States of America and adhere to ethical requirements to maintain independence from Healthsource Chiropractic.

Specifically, the auditor's responsibilities include obtaining reasonable assurance that the financial statements are free from material misstatement, whether due to fraud or error. This involves exercising professional judgment, maintaining professional skepticism, and performing audit procedures responsive to the assessed risks. These procedures include examining evidence regarding the amounts and disclosures in the financial statements on a test basis.

Furthermore, the auditor must gain an understanding of Healthsource Chiropractic's internal control relevant to the audit to design appropriate audit procedures, though not for the purpose of expressing an opinion on the effectiveness of the company's internal control. The auditor also evaluates the appropriateness of accounting policies used, the reasonableness of significant accounting estimates made by management, and the overall presentation of the financial statements. Ultimately, the auditor concludes whether there are conditions or events that raise substantial doubt about Healthsource Chiropractic's ability to continue as a going concern.