What is the date of the auditor's opinion on the Bombs Away financial statements?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Omar Alnuaimi, CPA
Naperville, IL January 13, 2023
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 35)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, the auditor's opinion for the financial statements as of December 31, 2022, is dated January 13, 2023. This opinion is provided by Omar Alnuaimi, CPA, from Naperville, IL. This indicates the completion of the audit for the 2022 financial year by the specified date.
For a prospective Bombs Away franchisee, this date is important because it signifies when the financial statements for the previous year were deemed fairly presented by an independent auditor. This provides a level of assurance regarding the accuracy and reliability of the financial information presented for that period. The audited financial statements offer insights into the financial health and performance of Bombs Away as of that date.
It's also noted that management evaluated subsequent events through February 8, 2024, which is the date the 2023 financial statements were available to be issued. This evaluation assesses events occurring after the balance sheet date to determine if they substantially affect the amounts and disclosures in the financial statements. This subsequent event evaluation provides further assurance that the financial statements reflect the most current information available.
Therefore, a franchisee should consider both the auditor's opinion date and the subsequent events review date when assessing the financial statements. These dates help to understand the timeline of financial review and the currency of the information presented in the FDD.