Does the independent accountant express an opinion on the financial statements of 2703203 Manitoba, Ltd. in the Coffee News review report?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
We have reviewed the accompanying financial statements of 2703203 Manitoba, Ltd. (a corporation), which comprise the balance sheets—income tax basis as of July 31, 2024 and 2023, and the related statements of operations and accumulated deficit—income tax basis and cash flows—income tax basis for the years then ended, and the related notes to the financial statements. A review includes primarily applying analytical procedures to management's financial data and making inquiries of company management. A review is substantially less in scope than an audit, the objective of which is the expression of an opinion regarding the financial statements as a whole. Accordingly, we do not express such an opinion.
Source: Item 23 — Receipts (FDD pages 36–118)
What This Means (2025 FDD)
According to the 2025 Coffee News Franchise Disclosure Document, the independent accountant's review report for 2703203 Manitoba, Ltd. does not express an opinion on the financial statements. Instead, the report states that a review is substantially less in scope than an audit, which would lead to an opinion. The purpose of the review is to apply analytical procedures and make inquiries of company management, not to provide a comprehensive audit.
The report explicitly states, "Accordingly, we do not express such an opinion." This means that the accountant is not providing a guarantee of the accuracy or completeness of the financial statements. They are only stating that, based on their limited review, they are not aware of any material modifications that should be made to the financial statements.
This is a common practice for smaller companies or those seeking to reduce audit costs. A review provides some level of assurance, but it is not as thorough as an audit. Prospective Coffee News franchisees should understand the limitations of a review report and consider seeking additional financial information or advice if they have concerns about the financial health of 2703203 Manitoba, Ltd.