During an audit of Bojangles' financial statements, what must auditors conclude regarding the company's ability to continue as a going concern?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for one year after the date the financial statements are available to be issued.
Auditors' Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a wh
- Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for a reasonable period of time.
Source: Item 22 — CONTRACTS (FDD page 82)
What This Means (2025 FDD)
According to Bojangles' 2025 Franchise Disclosure Document, when preparing financial statements, Bojangles' management is required to assess whether any conditions or events, when taken together, create significant doubt about the company's ability to continue operating for at least one year after the financial statements are issued.
Furthermore, the auditors are responsible for concluding whether there are conditions or events that raise substantial doubt about Bojangles' ability to continue as a going concern for a reasonable period of time. This assessment is a critical part of the audit, ensuring that the financial statements provide an accurate and reliable picture of the company's financial health.
For a prospective franchisee, this means that the FDD includes an independent audit report that considers Bojangles' financial stability and its capacity to remain in business. This offers a level of assurance, although not a guarantee, that the company has been thoroughly evaluated by independent auditors for its ability to meet its financial obligations and sustain its operations.