What documents were inspected to identify any evidence that may contradict management's assumptions regarding impairment indicators for Benihana?

According to Benihana's 2024 Franchise Disclosure Document, the audit procedures related to impairment of long-lived assets included inspecting several documents to identify evidence that may contradict management's assumptions. These documents included minutes of the board of directors, the company's public statements, operating plans, and industry data.

Specifically, the auditor evaluated Benihana's assessment of impairment indicators by testing long-lived restaurant assets for indications of impairment, including evaluating locations with current period losses or projected losses. They also performed inquiries of management regarding the processes and assumptions used to identify potential indicators of impairment, ensuring consistency with evidence from other audit areas.

By reviewing these documents, the auditor aimed to ensure that Benihana's management appropriately identified and assessed impairment indicators for its long-lived assets. This process is crucial for maintaining the accuracy and reliability of the company's financial statements, as it directly impacts the reported value of its assets. For a prospective franchisee, this indicates the thoroughness of the financial oversight and reporting within the Benihana franchise system.