Where can I find Benihana management's assessment of internal controls as of December 31, 2023?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
Our management has assessed the effectiveness of our internal control over financial reporting as of December 31, 2023. In making its assessment of internal control over financial reporting, management used the criteria set forth by the Committee of Sponsoring Organizations (the "COSO") of the Treadway Commission in Internal Control – Integrated Framework (2013). Based on this assessment, our CEO and CFO concluded that our internal control over financial reporting was effective as of December 31, 2023.
Deloitte & Touche LLP, the independent registered public accounting firm that audited the financial statements included in this Annual Report, has issued an attestation report on our internal control over financial reporting as of December 31, 2023.
Changes in Internal Control Over Financial Reporting
There have been no changes in our internal control over financial reporting that occurred during the quarter ended December 31, 2023 that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, management's assessment of the effectiveness of their internal control over financial reporting as of December 31, 2023, can be found in the Report of Management on Internal Control over Financial Reporting. This report confirms that Benihana's CEO and CFO have assessed and concluded that the company maintained effective internal control over financial reporting as of December 31, 2023, based on criteria from the Committee of Sponsoring Organizations (COSO) of the Treadway Commission in Internal Control – Integrated Framework (2013).
Furthermore, the FDD includes an attestation report on Benihana's internal control over financial reporting as of December 31, 2023, issued by Deloitte & Touche LLP, an independent registered public accounting firm. This report provides an external opinion on the effectiveness of Benihana's internal controls. The presence of both management's report and an independent auditor's report suggests a thorough approach to internal control assessment.
Prospective franchisees should review these reports carefully to understand the framework Benihana uses to ensure financial reporting reliability. Understanding the company's internal controls can provide insight into the overall financial management and stability of the organization. It is also important to note that the report also states that there were no changes in internal control over financial reporting during the quarter ended December 31, 2023, that would materially affect the company's internal control over financial reporting.