What is the auditor's responsibility regarding the accounting policies used by Mr. Sandless?

According to Mr. Sandless's 2025 Franchise Disclosure Document, the auditor has a responsibility to evaluate the appropriateness of the accounting policies used by the company's management. This evaluation also extends to the reasonableness of significant accounting estimates made by the management team. Furthermore, the auditor is tasked with evaluating the overall presentation of the financial statements to ensure they are fairly presented.

In fulfilling these responsibilities, the auditor must exercise professional judgment and maintain professional skepticism throughout the audit process. This involves identifying and assessing the risks of material misstatement in the financial statements, whether due to fraud or error, and designing audit procedures that are responsive to those risks. These procedures include examining evidence regarding the amounts and disclosures in the financial statements on a test basis.

The auditor's role is not to express an opinion on the effectiveness of Mr. Sandless's internal control but to gain an understanding of internal control relevant to the audit. This understanding is used to design audit procedures that are appropriate for the circumstances. Additionally, the auditor must conclude whether there are conditions or events that raise substantial doubt about Mr. Sandless's ability to continue as a going concern for a reasonable period of time and communicate with those charged with governance regarding the audit's scope, timing, significant findings, and internal control-related matters identified during the audit.