With whom is the auditor required to communicate regarding the audit of Afuri Ramen Dumpling?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
INANCIAL STATEMENTS | -7 |
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INDEPENDENT AUDITORS' REPORT
To the Stockholder Afuri Franchise, Inc.
We have audited the accompanying financial statements of Afuri Franchise, Inc., which comprise the balance sheets as of December 31, 2021 and 2020, and the related statements of operations and stockholder's equity and cash flows for the years then ended, and the related notes to the financial statements.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes 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.
Auditors' Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, the independent auditors' reports included in the document are addressed to specific entities within the company. The auditor for the financial statements as of December 31, 2021, and 2020, communicates with the Stockholder of Afuri Franchise, Inc. In contrast, the auditor for the financial statements as of December 31, 2023, and 2022, directs their report to the Board of Directors and Shareholder of Afuri Franchise, Inc.
This indicates a formal communication structure where the auditor's findings and opinions are directly conveyed to the key stakeholders responsible for the company's governance and financial oversight. For a prospective franchisee, this highlights the importance of understanding the financial health and reporting practices of Afuri Ramen Dumpling, as these reports are a key mechanism for ensuring transparency and accountability.
It is important to note that these reports are prepared by independent auditors, ensuring an objective assessment of the company's financial position. The reports cover critical aspects such as balance sheets, statements of operations, changes in stockholder's equity, and cash flows, providing a comprehensive view of Afuri Ramen Dumpling's financial performance. A potential franchisee should review these reports carefully to assess the financial stability and management practices of the franchisor.