According to the Basis for Opinion, who is responsible for Benihana's financial statements?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
The Company's management is responsible for these financial statements. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the company's management is responsible for the financial statements. The role of the auditing firm, as stated in the Basis for Opinion, is to express an opinion on these financial statements based on their audits.
This division of responsibility is standard practice. Management is intimately involved in the day-to-day financial operations of Benihana and therefore has the primary responsibility for ensuring the accuracy and completeness of the financial statements.
The independent auditing firm then reviews these statements to provide an unbiased opinion on whether they fairly represent Benihana's financial position and performance. This process ensures transparency and accountability in financial reporting, which is crucial for potential investors and franchisees.