For Chocolate Bash, what time period does the audit opinion cover for the profit and loss statements?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 38)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, the audit report covers the profit and loss statements for the twelve-month periods ending on December 31, 2023, December 31, 2022, and December 31, 2021. This means that the independent accountant has audited and expressed an opinion on the accuracy and fairness of Chocolate Bash's financial performance for each of these years.
For a prospective franchisee, this information is crucial because it provides insight into the financial health and historical performance of Chocolate Bash. By reviewing these audited profit and loss statements, a franchisee can assess the company's revenue, expenses, and profitability over the past three years. This helps in understanding the financial stability and growth potential of the franchisor.
The audit opinion indicates that the financial statements present fairly, in all material respects, the financial position, results of operations, and cash flows of Chocolate Bash for the specified periods, in accordance with accounting principles generally accepted in the United States of America. This provides a level of assurance that the financial information is reliable and can be used for making informed decisions. However, it is important to note that the audit is conducted based on auditing standards generally accepted in the United States of America, which include assessing the risks of material misstatement and evaluating the appropriateness of accounting policies and estimates made by management.