For Coffee News, what is the accountant's responsibility in relation to the financial statements?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
e 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.
Accountant's Responsibility
Our responsibility is to conduct the review engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. Those standards require us to perform procedures to obtain limited assurance as a basis for reporting whether we are aware of any material modifications that should be made to the financial statements for them to be in accordance with the basis of accounting the company uses for income tax purposes. We believe that the results of our procedures provide a reasonable basis for our conclusion.
We are required to be independent of 2703203 Manitoba, Ltd. and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our review.
Accountant's Conclusion
Based on our review, we are not aware of any material modifications that should be made to the accompanying financial statements in order for them to be in accordance with the basis of accounting the company uses for income tax purposes.
Basis of Accounting
We draw attention to Note 1 of the financial statements, which describes the basis of accounting.
Source: Item 23 — Receipts (FDD pages 36–118)
What This Means (2025 FDD)
According to Coffee News' 2025 Franchise Disclosure Document, the accountant's responsibility is to conduct a review engagement in accordance with the Statements on Standards for Accounting and Review Services, as dictated by the Accounting and Review Services Committee of the AICPA. This involves performing procedures to gain limited assurance that there are no material modifications needed for the financial statements to align with the company's income tax basis of accounting. The accountant's belief that the procedures' results offer a reasonable foundation for their conclusion is also part of their responsibility.
The accountant is required to maintain independence from 2703203 Manitoba, Ltd. and adhere to ethical responsibilities based on relevant ethical requirements related to the review. The review itself is substantially less in scope than a full audit, and as such, the accountant does not express an opinion on the financial statements as a whole.
Management holds the responsibility for the fair presentation of the financial statements in accordance with the basis of accounting the company uses for income tax purposes. This includes ensuring that this basis of accounting is acceptable for preparing the financial statements. Management is also responsible for internal control relevant to preventing material misstatements due to fraud or error.