Who must prepare the annual financial statements for a Casiola franchise?
Casiola 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 from 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 Casiola Franchise, LLC's ability to continue as a going concern within one year after the date that the financial statements are available to be issued.
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
The 2024 Casiola Franchise Disclosure Document (FDD) indicates that the company's management is responsible for the preparation and fair presentation of the financial statements. This includes ensuring the integrity and objectivity of these statements, and that they conform to generally accepted accounting principles (GAAP).
Specifically, Casiola's management is tasked with designing, implementing, and maintaining internal controls relevant to the preparation and fair presentation of financial statements. These controls should ensure the statements are free from material misstatement, whether due to fraud or error. Management is also responsible for evaluating whether there are conditions or events that raise substantial doubt about Casiola Franchise, LLC's ability to continue as a going concern within one year after the date that the financial statements are available to be issued.
An independent auditor, Metwally CPA PLLC, audits these financial statements and issues an opinion on whether they present fairly the financial position, results of operations, and cash flows of Casiola Franchise, LLC in accordance with GAAP. The auditor's report, dated March 18, 2024, is included in the FDD. However, the ultimate responsibility for the preparation and accuracy of the financial statements lies with Casiola's management.