What procedures were included in the audit of Benihana's financial statements?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, the audit of the company's financial statements was conducted in accordance with the standards of the Public Company Accounting Oversight Board (PCAOB). These standards mandate that the audit be planned and executed to provide reasonable assurance that the financial statements are free from material misstatement, whether due to error or fraud.
The audit procedures included assessing the risks of material misstatement in the financial statements, whether stemming from error or fraud, and implementing procedures to address these identified risks. These procedures involved examining evidence related to the amounts and disclosures within the financial statements on a test basis.
Additionally, the audit included an evaluation of the accounting principles used, significant estimates made by Benihana's management, and the overall presentation of the financial statements. The auditor believes that these audit procedures provide a reasonable basis for their opinion on the financial statements.