What must the auditor conclude regarding Carbones Pizzeria's ability to continue as a going concern?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
icant accounting estimates made by management, as well as evaluate the overall presentation of the consolidated financial statements.
- 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.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.
Arcadia, California April 4, 2025
M&T PIZZA INCORPORATED AND SUBSIDIARIES Consolidated Balance Sheet October 31, 2024
Assets
| Cash and cash equivalents | $ 303,235 |
|---|---|
| Accounts receivable, net of allowance for doubtful accounts of $175,595 | 202,203 |
| Due from stockholder |
Source: Item 22 — CONTRACTS (FDD page 30)
What This Means (2025 FDD)
According to Carbones Pizzeria's 2025 Franchise Disclosure Document, the auditor must conclude whether there are conditions or events that raise substantial doubt about M&T Pizza Incorporated and Subsidiaries' ability to continue as a going concern for a reasonable period of time. This assessment is made by the auditor based on conditions or events considered in the aggregate.
In forming their opinion, the auditor must evaluate the appropriateness of the accounting policies used by Carbones Pizzeria and the reasonableness of significant accounting estimates made by management. The auditor also evaluates the overall presentation of the consolidated financial statements to ensure they are fairly presented.
Furthermore, the auditor's responsibilities include communicating with those charged with governance regarding the planned scope and timing of the audit, any significant audit findings, and certain internal control-related matters identified during the audit. However, the audit is not performed to express an opinion on the effectiveness of the company's internal control.