What responsibility does Aerus' management have regarding internal controls for financial statement preparation?
Aerus Franchise · 2025 FDDAnswer from 2025 FDD Document
Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United 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 of 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 the Company's ability to continue as a going concern within one year after the date that the financial statements are available to be issued.
Source: Item 23 — Receipts (FDD pages 74–305)
What This Means (2025 FDD)
According to Aerus' 2025 Franchise Disclosure Document, management is responsible for the preparation and fair presentation of the company's financial statements in accordance with accounting principles generally accepted in the United States of America. This includes the design, implementation, and maintenance of internal controls relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In practical terms, this means Aerus' management must establish and maintain systems and procedures to ensure the accuracy and reliability of the company's financial reporting. These controls are designed to prevent and detect errors or fraud that could materially misstate the financial statements. This responsibility is crucial for providing stakeholders, including potential franchisees, with confidence in the financial information presented by Aerus.
Furthermore, Aerus' management is required to evaluate whether there are conditions or events that raise substantial doubt about the company's ability to continue as a going concern within one year after the date that the financial statements are available to be issued. This assessment is a critical component of their responsibility for the fair presentation of the financial statements, ensuring that users are informed of any potential risks to the company's future operations.