Are there any qualifications in the auditor's opinion for City Publications?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
| 3 | |
|---|---|
| Report | |
| Balance Sheets | 5 |
| Statements | 6 |
| of Operations | |
| Statements | 7 |
| of Changes in Shareholders' | |
| (Deficit) | |
| Statements | 8 |
| of Cash Flows | |
| Notes to Financial Statements | 9 |
Independent Auditor's Report
To the Members CITY PUBLICATIONS FRANCHISE GROUP, INC. Atlanta, Geogia
Report on the Audit of the Financial Statements
Opinion
We have audited the accompanying balance sheets of CITY PUBLICATIONS FRANCHISE GROUP, INC. as of December 31, 2024, and 2023 and the related statements of operations, shareholders' (deficit), and cash flows for the years ended December 31, 2024, and 2023, and the notes to financial statements.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of CITY PUBLICATIONS FRANCHISE GROUP, INC. as of December 31, 2024, and 2023, and the results of their operations and their cash flows for the years ended December 31, 2024, and 2023, 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 (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 CITY PUBLICATIONS FRANCHISE GROUP, INC.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 38)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, the independent auditor's report expresses an unqualified opinion on the company's financial statements. The auditor states that the financial statements of City Publications present fairly, in all material respects, the financial position of the company as of December 31, 2024, and 2023, 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. This indicates that the auditor found no material misstatements or issues that would require a qualification of their opinion.
The report also mentions that the audits were conducted in accordance with auditing standards generally accepted in the United States of America (GAAS). These standards require the auditor to be independent and to meet ethical responsibilities. The auditor believes that the audit evidence obtained was sufficient and appropriate to provide a basis for their opinion. Furthermore, the report notes that the financial statements for the year ended December 31, 2022, were audited by another auditor who expressed an unmodified opinion on March 15, 2023.
For a prospective franchisee, this unqualified opinion suggests that the financial statements of City Publications are reliable and fairly presented. It provides a level of confidence that the company's financial records accurately reflect its financial position and performance. However, it is important for the franchisee to review the financial statements and the accompanying notes in detail, and to seek professional advice to fully understand the financial health and stability of City Publications.