What is the purpose of the procedures performed by the accountant during the Coffee News review engagement?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — Receipts (FDD pages 36–118)
What This Means (2025 FDD)
According to Coffee News's 2025 Franchise Disclosure Document, the purpose of the accountant's review engagement is to conduct procedures to obtain limited assurance as a basis for reporting whether they are aware of any material modifications that should be made to the financial statements. This review is conducted in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. The accountant believes that the results of their procedures provide a reasonable basis for their conclusion.
The review engagement primarily involves applying analytical procedures to management's financial data and making inquiries of company management. It's important to note that a review is substantially less in scope than an audit. The objective of an audit is to express an opinion regarding the financial statements as a whole, which the accountant does not do during a review engagement.
During the review, the accountant is also required to be independent of 2703203 Manitoba, Ltd. and to meet other ethical responsibilities, in accordance with the relevant ethical requirements related to the review. This ensures objectivity and integrity in the review process. The accountant's conclusion is based on the procedures performed and the evidence obtained during the review engagement.