What auditing standards were followed in the audit of Zoomin Groomin USA LLC's financial statements?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
omprise the balance sheets as of December 31, 2024, and the related statements of operations, members' equity, and cash flows for the three years then ended, and the related notes to the financial statements.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Zoomin Groomin USA LLC as of December 31, 2024, and the results of its operations and its cash flows for the three years then ended, in accordance with the generally accepted accounting principles in the United States of America.
Basis for Opinion
The audit was conducted in accordance with auditing standards generally accepted in the United States of America. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. The auditor is required to be independent of Zoomin Groomin USA LLC and meet other ethical responsibilities in accordance with the relevant ethical requirements relating to the audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with generally accepted accounting principles in the Unites States of America; and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about Zoomin Groomin USA LLC's ability to continue as a going concern within one year after the date that the financial statements are available to be issued.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Source: Item 9 — 01. Financial Statements and Exhibits. (FDD pages 68–156)
What This Means (2025 FDD)
According to Zoomin Groomin's 2025 Franchise Disclosure Document, the audit of Zoomin Groomin USA LLC's financial statements was conducted in accordance with auditing standards generally accepted in the United States of America. This means that the independent auditor, DASH Business Solutions, LLC, followed a set of established guidelines and principles to ensure the financial statements present fairly the company's financial position as of December 31, 2024, and the results of its operations and cash flows for the three years then ended. These standards are designed to provide reasonable assurance that the financial statements are free from material misstatement.
The auditor's responsibilities under these standards include exercising professional judgment, maintaining professional skepticism, identifying and assessing risks of material misstatement, and obtaining an understanding of internal control relevant to the audit. The auditor examines evidence on a test basis, evaluates the appropriateness of accounting policies, and assesses the reasonableness of significant accounting estimates made by management. The auditor also has a responsibility to communicate with those charged with governance regarding the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters identified during the audit.
For a prospective Zoomin Groomin franchisee, this information indicates that the franchisor's financial statements have been reviewed by an independent auditor using generally accepted standards. This can provide a level of comfort that the financial information presented is reliable and has been subjected to scrutiny by an objective third party. However, it is important to note that reasonable assurance is not absolute assurance, and there is always a risk that a material misstatement may not be detected, especially one resulting from fraud.