What is the auditor required to communicate to those charged with governance regarding the audit of Aira Fitness?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
924 W. 75th Street Suite 120 - 189 Naperville, IL 60565 +1 (815) 348-2421 omar@napercpa.com
INDEPENDENT ACCOUNTANT AUDIT REPORT
To the Management of AIRA FITNESS FRANCHISING LLC
Opinion
We have audited the financial statements of AIRA FITNESS FRANCHISING LLC (the "Company"), which comprise the Balance Sheet as of December 31, 2024 & December 31, 2023 & December 31, 2022, the related Profit & Loss Statements, the related Statements of Cashflows, the related Statements of Shareholders' Equity, and the related notes for the twelve-month periods then ended. (collectively referred to as the "financial statements").
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2024 & December 31, 2023 & December 31, 2022, and the results of its operations and its cash flows for the twelve-month periods then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Company and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audits. 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 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 of material misstatement, whether due to fraud or error.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
Based on the 2025 Aira Fitness Franchise Disclosure Document, the independent accountant's audit report outlines several key communications. The auditor's responsibilities under Generally Accepted Auditing Standards (GAAS) in the United States require them to describe their responsibilities for the audit of the financial statements. They must affirm their independence from Aira Fitness Franchising LLC and confirm they have met all ethical responsibilities pertinent to the audit. The auditor must also express their belief that the audit evidence obtained is sufficient and appropriate to serve as the foundation for their audit opinion. These communications are essential to ensure transparency and reliability in the financial reporting of Aira Fitness.
Furthermore, the audit report explicitly states that 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. This includes the design, implementation, and maintenance of internal controls relevant to the preparation and fair presentation of financial statements that are free of material misstatement, whether due to fraud or error. The auditor's communication to management would likely cover these responsibilities to ensure that management is fully aware of their role in the financial reporting process.
In summary, the auditor's communication to those charged with governance, such as the management of Aira Fitness Franchising LLC, includes the scope and methodology of the audit, confirmation of independence and ethical responsibilities, and the responsibilities of the management in preparing and presenting fair financial statements. This ensures that all parties involved understand their roles and responsibilities in maintaining the integrity of the financial reporting process.