What is the auditor's responsibility regarding Aira Fitness's ability to continue as a going concern?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
ed 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.
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 for one year after the date that the financial statements are available to be issued.
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 audit report outlines the responsibilities of both the management of Aira Fitness Franchising LLC and the auditor. The 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.
The auditor's responsibility is to conduct the audit in accordance with auditing standards generally accepted in the United States of America (GAAS). These standards require the auditor to be independent of the company and to meet ethical responsibilities related to the audit. The auditor's role is to express an opinion on whether the financial statements present fairly the financial position, results of operations, and cash flows of Aira Fitness in accordance with accounting principles generally accepted in the United States of America.
However, the provided excerpts from the FDD do not explicitly detail the auditor's responsibility regarding Aira Fitness's ability to continue as a going concern. While the audit report confirms that the financial statements present fairly the company's financial position, it does not specify the procedures or considerations undertaken by the auditor to assess the company's ability to operate as a going concern. A prospective franchisee should ask Aira Fitness for more information about the auditor's specific responsibilities in assessing the company's ability to continue as a going concern.