What is management responsible for regarding internal controls related to Aw's financial statements?
Aw 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 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 Rayyan Pizza Franchise LLC'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 21 — FINANCIAL STATEMENTS (FDD page 39)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, management holds several key responsibilities concerning the company's financial statements. Specifically, management is tasked with the preparation and fair presentation of these financial statements, ensuring they align with accounting principles generally accepted in the United States of America. This encompasses the accurate and transparent reporting of Aw's financial position.
Furthermore, Aw's management is responsible for the design, implementation, and maintenance of internal controls. These controls are crucial for ensuring that the financial statements remain free from material misstatements, whether those misstatements arise from fraud or error. This aspect of their role is vital for maintaining the integrity and reliability of the financial data presented.
In addition to these responsibilities, Aw's management is also required to evaluate whether there are conditions or events that, when considered together, might raise substantial doubt about the company's ability to continue as a going concern within one year after the date the financial statements are issued. This forward-looking assessment is a critical component of their financial oversight, ensuring that potential risks to the company's sustainability are identified and addressed.