What is the auditor required to communicate to those charged with governance at Camp Margaritaville?
Camp_Margaritaville Franchise · 2025 FDDAnswer from 2025 FDD Document
Report of Independent Auditors
The Partners Margaritaville Holdings LLC
Opinion
We have audited the consolidated financial statements of Margaritaville Holdings LLC and its subsidiaries (collectively, the Company), which comprise the consolidated balance sheets as of December 31, 2024 and 2023, and the related consolidated statements of operations, changes in partners' deficit, and cash flows for the years then ended, and the related notes to the consolidated financial statements (collectively referred to as the financial statements).
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2024 and 2023, and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Company and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Responsibilities of Management for the Financial Statements
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.
Auditor's Responsibilities for the Audit of the Financial Statements
Source: Item 23 — RECEIPTS (FDD pages 72–406)
What This Means (2025 FDD)
Based on the 2025 Camp Margaritaville Franchise Disclosure Document, the Report of Independent Auditors outlines the responsibilities of both management and the auditor in relation to the consolidated financial statements of Margaritaville Holdings LLC and its subsidiaries. The auditor's responsibilities include conducting audits in accordance with auditing standards generally accepted in the United States of America (GAAS). These standards dictate that the auditor must be independent and meet ethical requirements. The auditor's report expresses an opinion on whether the financial statements present fairly the company's financial position, results of operations, and cash flows in accordance with accounting principles generally accepted in the United States of America.
The auditor's role involves more than just reviewing numbers; it requires assessing the design, implementation, and maintenance of internal controls relevant to the preparation and fair presentation of financial statements. This assessment aims to ensure that the financial statements are free from material misstatement, whether due to fraud or error. The auditor must obtain sufficient and appropriate audit evidence to provide a basis for their opinion.
Management is responsible for the preparation and fair presentation of the financial statements, including evaluating the company's ability to continue as a going concern for one year after the financial statements are issued. The auditor's communication to those charged with governance would likely include significant findings from the audit, such as any material weaknesses in internal control, instances of non-compliance with laws and regulations, and disagreements with management. However, the excerpt does not explicitly detail the specific communications required between the auditor and those charged with governance.