What ethical responsibilities are the auditors required to meet during the Jersey Mikes audit?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
We conducted our audits 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 22 — CONTRACTS (FDD page 77)
What This Means (2025 FDD)
According to Jersey Mike's 2025 Franchise Disclosure Document, the auditors performing the audit of Jersey Mike's Franchise Systems, LLC, are required to be independent of the company. They must also meet other ethical responsibilities in accordance with the relevant ethical requirements relating to their audits. This ensures that the audit is conducted with integrity and objectivity.
These ethical requirements are part of the auditing standards generally accepted in the United States of America (GAAS), which Jersey Mike's auditors adhere to. By adhering to GAAS, the auditors aim to obtain 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 evaluating the appropriateness of accounting policies.
The auditors' responsibilities also include identifying and assessing the risks of material misstatement, understanding internal controls, and evaluating the overall presentation of the financial statements. Furthermore, they must communicate with those charged with governance regarding the scope and timing of the audit, significant audit findings, and internal control-related matters identified during the audit. These measures collectively contribute to the reliability and credibility of Jersey Mike's financial statements.