What must be concluded regarding Chocolate Bash's ability to continue as a going concern?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
omar@napercpa.com
INDEPENDENT ACCOUNTANT AUDIT REPORT
To the Management of CHOCOLATE BASH FRANCHISING LLC
Opinion
We have audited the financial statements of CHOCOLATE BASH FRANCHISING LLC (the "Company"), which comprise the Balance Sheet as of December 31, 2023 & December 31, 2022 & December 31, 2021, the related Profit & Loss Statements, the related Statements of Cashflows, the related Statements of Shareholders' Equity, and the related notes for the twelve-month periods then ended. (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, 2023 & December 31, 2022 & December 31, 2021, and the results of its operations and its cash flows for the twelve-month periods then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audit 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.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 38)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, the independent accountant's audit report offers an opinion on the company's financial statements for the years ending December 31, 2023, 2022, and 2021. The report states that the financial statements present fairly the financial position, results of operations, and cash flows of Chocolate Bash in accordance with accounting principles generally accepted in the United States of America.
The auditor's responsibilities include concluding whether there are conditions or events that raise substantial doubt about Chocolate Bash's ability to continue as a going concern for a reasonable period of time. Management is required to 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.
Furthermore, the management of Chocolate Bash evaluated subsequent events through March 13, 2024, the date the financial statements were available to be issued, and determined that none of the events occurring after the balance sheet date substantially affect the amounts and disclosures in the financial statements. This suggests that as of the audit date, there were no known issues that would prevent Chocolate Bash from continuing as a going concern.