What is the timing of the audit planned by the auditor for Coffee News?

According to the 2025 Coffee News Franchise Disclosure Document, the auditors are required to communicate with those charged with governance regarding the planned scope and timing of the audit. The audit report included in the FDD is dated February 27, 2025.

This indicates that the audit for the financial statements of Coffee News USA, Inc. is conducted annually. The audit encompasses the balance sheets, statements of income and retained earnings, and cash flows for the years specified in the report. For prospective franchisees, this signifies that Coffee News undergoes regular financial scrutiny, which can provide a level of assurance regarding the company's financial health and stability.

The auditor's responsibilities include obtaining reasonable assurance that the financial statements are free from material misstatement. They achieve this by exercising professional judgment, assessing risks, examining evidence, and evaluating accounting policies and estimates. They also evaluate Coffee News's ability to continue as a going concern. The communication of the audit's scope and timing ensures transparency and allows for input from those overseeing the company's governance.

While the FDD specifies that the auditors communicate the planned timing, it does not provide specific dates or deadlines for when the audit work will be performed during the year. A prospective franchisee may want to inquire about the typical timeline for the audit process to better understand when financial information is reviewed and verified.