Does the Pearce Bespoke audit include examining evidence regarding amounts and disclosures in the financial statements?

According to Pearce Bespoke's 2025 Franchise Disclosure Document, the audit conducted on the company's financial statements does involve examining evidence related to the amounts and disclosures presented in those statements. The auditor's responsibilities include identifying and assessing the risks of material misstatement of the financial statements, whether due to fraud or error, and designing and performing audit procedures responsive to those risks. As part of these procedures, the auditors examine evidence regarding the amounts and disclosures in the financial statements on a test basis.

This means that the auditor does not review every single transaction or disclosure, but rather selects a sample to gain reasonable assurance that the financial statements are fairly presented. This approach is standard in auditing because examining every transaction would be too time-consuming and costly. The auditor's objective is to obtain reasonable assurance that the financial statements are free from material misstatement.

For a prospective Pearce Bespoke franchisee, this indicates that the financial statements provided in the FDD have been subjected to an independent audit, which adds a level of credibility. However, it is important to remember that an audit is not a guarantee of absolute accuracy. The auditor's opinion is based on the evidence obtained during the audit, and there is always a risk that a material misstatement could go undetected. Therefore, a franchisee should still carefully review the financial statements and consider seeking advice from a financial professional.