What does it mean that the Augusta Lawn Care financial statements are 'audited'?
Augusta_Lawn_Care 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 AUGUSTA FRANCHISE LLC
Opinion
We have audited the financial statements of AUGUSTA FRANCHISE 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.
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 21 — FINANCIAL STATEMENTS (FDD page 43)
What This Means (2025 FDD)
According to the 2025 Augusta Lawn Care Franchise Disclosure Document, the financial statements of Augusta Franchise LLC have been audited by an independent accountant. This means that an independent accounting firm has examined the company's financial records and statements to ensure they are presented fairly and in accordance with generally accepted accounting principles (GAAP) in the United States of America. The audit provides an opinion on whether the financial statements accurately reflect the company's financial position, results of operations, and cash flows for the specified periods.
The independent accountant's report includes an opinion stating that the financial statements present fairly, in all material respects, the financial position of Augusta Franchise LLC as of December 31, 2024, December 31, 2023, and December 31, 2022, and the results of its operations and cash flows for the twelve-month periods then ended, in accordance with accounting principles generally accepted in the United States of America. This opinion gives prospective franchisees a higher level of confidence in the accuracy and reliability of the financial information provided by Augusta Lawn Care.
The audit was conducted in accordance with auditing standards generally accepted in the United States of America (GAAS), requiring the accountant to be independent and meet ethical responsibilities. The accountant's responsibilities include describing the responsibilities of management for the preparation and fair presentation of the financial statements, including the design, implementation, and maintenance of internal controls. The audit aims to provide reasonable assurance that the financial statements are free of material misstatement, whether due to fraud or error. The accountant believes that the audit evidence obtained is sufficient and appropriate to provide a basis for their audit opinion.
For a prospective Augusta Lawn Care franchisee, the audited financial statements offer a degree of assurance that the financial information provided by the franchisor has been scrutinized by an independent expert. This can be valuable when assessing the financial health and stability of the franchisor, which is a critical factor in evaluating the overall franchise opportunity. However, it is important to note that an audit does not guarantee the future success of the franchise, and prospective franchisees should still conduct their own due diligence and consult with financial advisors.