Are the financial statements for Cinch I.T. unaudited?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
and Non- | M. General Release | | Competition Agreement | | | G. Employee Confidentiality Agreement | N. Receipts |
- From Street, 16th Floor Worcester, MA 01608 Tel: (508) 757-33 LL Fax: (508) 752-3577
INDEPENDENT AUDITORS' REPORT
To the Member of Cinch Franchise, LLC Worcester, Massachusetts
Opinion
We have audited the accompanying financial statements of Cinch Franchise, LLC (an S-Corporation), which comprise the balance sheets as of December 31, 2021 and 2020, and the related statements of operations and member's deficit and cash flows for the years then ended, and the related notes to the financial statements.
In our opinion, the financial statements referred to above presents fairly, in all material respects, the financial position of Cinch Franchise, LLC as of December 31, 2021 and 2020, and the results of its operations and 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. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of Cinch Franchise, LLC 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 from material misstatement, whether due to fraud or error.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 60)
What This Means (2024 FDD)
According to Cinch I.T.'s 2024 Franchise Disclosure Document, the financial statements of Cinch Franchise, LLC, have been audited. Specifically, the document includes an "INDEPENDENT AUDITORS' REPORT" which covers the financial statements. This report includes an opinion from the auditors regarding the fairness and accuracy of Cinch I.T.'s financial statements.
The presence of an independent auditor's report indicates that a qualified firm has examined Cinch I.T.'s financial records and internal controls. The auditors follow generally accepted auditing standards to ensure the financial statements are free from material misstatement. This process involves assessing the risk of fraud or error and evaluating the company's ability to continue as a going concern.
For a potential Cinch I.T. franchisee, audited financial statements provide a higher level of confidence compared to unaudited statements. Audited statements suggest that the financial information has been vetted by an independent third party, reducing the risk of inaccuracies or misrepresentations. This can be a crucial factor in making an informed investment decision, as it offers a more reliable view of the franchisor's financial health and stability.