What is Benihana's management responsible for establishing and maintaining regarding financial reporting?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
Our management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act. Internal control over financial reporting is a process to provide reasonable assurance regarding the reliability of our financial reporting for external purposes in accordance with accounting principles generally accepted in the United States of America. Internal control over financial reporting includes maintaining records that in reasonable detail accurately and fairly reflect our transactions; providing reasonable assurance that transactions are recorded as necessary for preparation of our financial statements; providing reasonable assurance that receipts and expenditures are made in accordance with management authorization; and providing reasonable assurance that unauthorized acquisition, use or disposition of company assets that could have a material effect on our financial statements would be prevented or detected on a timely basis. Because of its inherent limitations, internal control over financial reporting is not intended to provide absolute assurance that a misstatement of our financial statements would be prevented or detected.
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.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, management is responsible for establishing and maintaining adequate internal control over financial reporting. This includes ensuring the reliability of financial reporting for external purposes, in accordance with accounting principles generally accepted in the United States of America. The rules that define these responsibilities are 13a-15(f) and 15d-15(f) under the Exchange Act. This process intends to provide reasonable assurance, not absolute assurance, that financial statements are free from misstatement.
Specifically, Benihana's internal control over financial reporting involves several key functions. These include maintaining detailed and accurate records of transactions, ensuring transactions are recorded appropriately for financial statement preparation, providing assurance that receipts and expenditures are made with management authorization, and preventing or detecting unauthorized use or disposal of company assets that could significantly impact the financial statements.
Benihana's management assesses the effectiveness of these controls, using criteria established by the Committee of Sponsoring Organizations (COSO) of the Treadway Commission in Internal Control – Integrated Framework (2013). Based on their assessment as of December 31, 2023, the CEO and CFO concluded that the internal controls over financial reporting were effective. An independent registered public accounting firm, Deloitte & Touche LLP, also issued an attestation report on the company's internal control over financial reporting as of the same date.