What is Bombs Away management responsible for regarding internal controls related to financial statement preparation?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free of material misstatement, whether due to fraud or error.
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 that the financial statements are available to be issued.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 35)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, management is responsible for several key aspects of financial statement preparation. This includes the design, implementation, and maintenance of internal controls. These controls are essential to ensure that the financial statements are presented fairly and are free from material misstatements, whether those misstatements are due to fraud or error.
Bombs Away's management is also tasked with preparing and fairly presenting the financial statements in accordance with accounting principles generally accepted in the United States of America. Additionally, management must evaluate whether there are conditions or events that raise substantial doubt about the company's ability to continue as a going concern for one year after the date that the financial statements are available to be issued.
These responsibilities are standard for management in any organization and are crucial for maintaining the integrity and reliability of financial reporting. Prospective franchisees should be aware that the financial statements provided in the FDD are the responsibility of Bombs Away's management, and an independent auditor has provided an opinion on those statements.