Do the audit procedures for Pearce Bespoke include examining evidence regarding amounts and disclosures?

According to Pearce Bespoke's 2025 Franchise Disclosure Document, the audit procedures include examining evidence regarding amounts and disclosures in the financial statements. The auditors' 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 independent auditor reviews Pearce Bespoke's financial records and disclosures to ensure they are materially correct and comply with accounting standards. This process helps to provide assurance that the financial statements are presented fairly and accurately. The audit is conducted in accordance with generally accepted auditing standards (GAAS).

Prospective franchisees should understand that while the audit aims to detect material misstatements, it is not a guarantee against all errors or fraud. The auditor's report expresses an opinion on the fairness of the financial statements, based on the evidence gathered during the audit. This provides a level of confidence in the financial information presented, but it is important for franchisees to also conduct their own due diligence and seek professional advice when evaluating the franchise opportunity.