What date is the auditor's report for Cinnaholic dated?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users made on the basis of these financial statements. In performing an audit in accordance with GAAS, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of Cinnaholic Franchising, LLC's internal control. Accordingly, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about Cinnaholic Franchising, LLC'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.
Muhammad Zubairy, CPA PC
Westbury, NY
April 4, 2024
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 61)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, the auditor's report is dated April 4, 2024. This date indicates when the auditor, Muhammad Zubairy, CPA PC, completed their evaluation of Cinnaholic Franchising LLC's financial statements. The auditor's report provides an independent opinion on the fairness and accuracy of the company's financial statements.
For a prospective Cinnaholic franchisee, the auditor's report is a crucial component of due diligence. It offers insight into the financial health and stability of the franchisor. The report confirms that the financial statements for the balance sheets as of December 31, 2024 and 2023, and the related statements of operations, and changes in members' (deficit), and cash flows for the years then ended, were audited according to generally accepted auditing standards (GAAS).
The auditor's responsibilities include obtaining reasonable assurance that the financial statements are free from material misstatement. This involves assessing risks, examining evidence, and evaluating accounting policies. The auditor also considers Cinnaholic's ability to continue as a going concern. The fact that the audit was completed and the report issued on April 4, 2024, suggests that the auditor had access to the necessary information to form an opinion on the company's financial position as of December 31, 2024.
It is important for potential franchisees to carefully review the full audited financial statements and the accompanying notes, in addition to the auditor's report. This review should be done in consultation with a qualified financial advisor to fully understand the financial risks and opportunities associated with investing in a Cinnaholic franchise.