What auditing standards are the audits of Ledgers conducted in accordance with?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of Financial Statements section of our report. We are required to be independent of Loyalty Business Services, LLC 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.
2023 Financial Statements Restated
As discussed in Note 9 to the financial statements, the 2023 financial statements have been restated to correct a misstatement. Our opinion is not modified with respect to this matter.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, the audits of Loyalty Business Services, LLC, which Ledgers is a part of, are conducted in accordance with auditing standards generally accepted in the United States of America. This indicates that the company adheres to a widely recognized and respected set of guidelines for ensuring the accuracy and reliability of its financial statements.
The auditor's report states their responsibility is to obtain reasonable assurance that the financial statements are free from material misstatement, whether due to fraud or error. However, it also notes that reasonable assurance is not absolute, and there is always a risk that a material misstatement may not be detected, especially in cases involving fraud. The auditor's responsibilities include exercising professional judgment, assessing risks of material misstatement, understanding internal controls, evaluating accounting policies, and concluding on the company's ability to continue as a going concern.
For a prospective Ledgers franchisee, this means that the financial information provided by the company has been vetted by an independent auditor using established standards. While this does not guarantee the complete absence of errors or fraud, it does provide a level of confidence in the financial data. Franchisees can review the auditor's report and the financial statements to gain a better understanding of the company's financial health and performance. Additionally, the FDD mentions that the 2023 financial statements were restated to correct a misstatement, which is disclosed in Note 9. This restatement does not modify the auditor's opinion, but it is something a potential franchisee may want to investigate further.