What does the auditing firm believe regarding the audit evidence obtained during the Coffee News audit?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
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 Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of Coffee News USA, Inc., 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.
Source: Item 23 — Receipts (FDD pages 36–118)
What This Means (2025 FDD)
According to Coffee News's 2025 Franchise Disclosure Document, the auditing firm believes that the audit evidence they obtained is sufficient and appropriate to provide a basis for their audit opinion. This statement is part of the Independent Auditor's Report included in the FDD. The audit was conducted in accordance with auditing standards generally accepted in the United States of America.
In their report, the auditors state that they are required to be independent of Coffee News USA, Inc. and to meet ethical responsibilities relevant to their audits. The audit firm's opinion is that the financial statements of Coffee News USA, Inc. present fairly, in all material respects, the financial position as of December 31, 2024, 2023, and 2022, and the results of its operations and its cash flows for the years then ended, in accordance with accounting principles generally accepted in the United States of America.
For a potential Coffee News franchisee, this indicates that an independent firm has reviewed Coffee News's financial records and found them to be fairly presented. This can provide some assurance about the financial stability and transparency of the franchisor. However, it is important to note that an audit provides reasonable assurance, not absolute assurance, and does not guarantee the detection of all material misstatements.