What standard does the auditor use when conducting an audit of Mr. Sandless' financial statements?
Mr_Sandless 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 Mr. Sandless Franchise, LLC 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 basisfor our audit opinion.
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 41–42)
What This Means (2025 FDD)
According to the 2025 FDD, the auditor for Mr. Sandless conducts audits in accordance with auditing standards generally accepted in the United States of America (GAAS). This means the auditor follows a set of professional standards and guidelines when examining Mr. Sandless' financial statements. These standards ensure a certain level of quality and consistency in the audit process.
The auditor's responsibilities under GAAS include obtaining reasonable assurance about whether the financial statements are free from material misstatement, whether due to fraud or error, and issuing an auditor's report that includes their opinion. Reasonable assurance is a high level of assurance, but it is not absolute, so there is no guarantee that an audit will always detect a material misstatement.
Management for Mr. Sandless is responsible for preparing and presenting the financial statements fairly, in accordance with accounting principles generally accepted in the United States of America. They are also responsible for designing, implementing, and maintaining internal controls relevant to the preparation and fair presentation of financial statements. This includes evaluating whether there are conditions or events that raise substantial doubt about Mr. Sandless' ability to continue as a going concern.