What is the auditor's responsibility regarding significant accounting estimates made by Mr. Sandless' management?

According to Mr. Sandless' 2025 Franchise Disclosure Document, the auditor has a responsibility to evaluate the reasonableness of significant accounting estimates made by the company's management. This evaluation is part of the broader audit process, which aims to provide reasonable assurance that the financial statements are free from material misstatement. The auditor's assessment includes reviewing the appropriateness of the accounting policies used by Mr. Sandless and evaluating the overall presentation of the financial statements.

In addition to assessing accounting estimates, the auditor must also determine whether there are conditions or events that raise substantial doubt about Mr. Sandless' ability to continue as a going concern for a reasonable period. This involves considering all relevant factors and making a judgment based on the audit evidence obtained. The auditor's role is to provide an independent and objective opinion on the fairness of the financial statements.

The auditor is also obligated to communicate with those charged with governance within Mr. Sandless regarding the planned scope and timing of the audit, any significant findings, and any internal control-related matters identified during the audit. This communication ensures transparency and provides an opportunity for those in governance to address any concerns raised by the auditor. By fulfilling these responsibilities, the auditor contributes to the credibility and reliability of Mr. Sandless' financial reporting.