What accounting principles are used in the City Publications financial statements?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Other Matter
The financial statements of CITY PUBLICATIONS FRANCHISE GROUP, INC. for the year ended December 31, 2022, were audited by another auditor who expressed an unmodified opinion on those statements on March 15, 2023.
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.
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 CITY PUBLICATIONS FRANCHISE GROUP, INC.'s ability to continue as a going concern for one year after the date that the financial statements are issued.
Auditor's Responsibilities for the Audit of the Financial Statements
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.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 38)
What This Means (2025 FDD)
According to City Publications's 2025 Franchise Disclosure Document, the financial statements are prepared in accordance with accounting principles generally accepted in the United States of America. This indicates that City Publications adheres to a standardized set of guidelines and practices when reporting its financial information.
Specifically, the independent auditor's report states that the auditor's opinion is based on audits conducted following auditing standards generally accepted in the United States of America (GAAS). The auditor's responsibilities include evaluating the appropriateness of accounting policies used by City Publications's management and the reasonableness of significant accounting estimates.
Furthermore, management is responsible for the fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America. This includes the design, implementation, and maintenance of internal controls relevant to the preparation of these financial statements, ensuring they are free from material misstatement, whether due to fraud or error. The use of these principles and standards aims to provide a transparent and reliable view of City Publications's financial position for potential franchisees.