Are Baya Bar's financial statements audited?
Baya_Bar Franchise · 2024 FDDAnswer from 2024 FDD Document
Independent Auditor's Report
To the Members Baya Bar Franchise System, LLC Staten Island, New York
Report on the Audit of the Financial Statements
Opinion
We have audited the accompanying balance sheets of Baya Bar Franchise System, LLC as of December 31, 2023, and 2022 and the related statements of operations, members' equity and cash flows for the years ended December 31, 2023, 2022, and 2021, and the related notes to the financial statements.
In our opinion the financial statements referred to above present fairly, in all material respects, the financial position of Baya Bar Franchise System, LLC as of December 31, 2023, and 2022, and the results of their operations and their cash flows for the years ended December 31, 2023, 2022, and 2021, in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audits 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 Baya Bar Franchise System, LLC 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 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 Baya Bar Franchise System, LLC's ability to continue as a going concern for one year after the date that the financial statements are issued.
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 55–56)
What This Means (2024 FDD)
Yes, according to Baya Bar's 2024 Franchise Disclosure Document, the company's financial statements have been audited. The FDD includes an Independent Auditor's Report, indicating that an audit of the balance sheets as of December 31, 2023, and 2022, and the related statements of operations, members' equity, and cash flows for the years ended December 31, 2023, 2022, and 2021, has been conducted. This report confirms that the financial statements are presented fairly in accordance with accounting principles generally accepted in the United States of America.
The audit was performed in accordance with auditing standards generally accepted in the United States of America (GAAS). These standards require the auditor to be independent and to meet ethical responsibilities. The auditor's responsibilities include obtaining reasonable assurance about whether the financial statements are free from material misstatement, whether due to fraud or error, and issuing an auditor's report that includes their opinion.
The management of Baya Bar is responsible for the preparation and fair presentation of the financial statements, including the design, implementation, and maintenance of internal control relevant to the preparation of financial statements that are free from material misstatement. Management is also required to evaluate whether there are conditions or events 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 issued.
The presence of an independent auditor's report in Baya Bar's FDD provides potential franchisees with a higher level of confidence in the accuracy and reliability of the financial information presented. This is a common practice among franchisors and is intended to provide transparency and assurance to prospective franchisees.