What does the auditors' report for Counselor Realty include?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
To Counselor Realty Franchising, Inc.
Opinion
We have audited the financial statements of Counselor Realty Franchising, Inc. (the Company), which comprise the balance sheets as of December 31, 2024 and 2023, and the related statements of operations, stockholder's equity and cash flows for the years ended December 31, 2024, 2023 and 2022 and the related notes to the financial statements.
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023 and the results of its operations and its cash flows for the years ended December 31, 2024, 2023 and 2022 in accordance with accounting principles generally accepted in the United States of America (GAAP).
Basis for Opinion
We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Company 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.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with GAAP, and for the 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.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern within one year after the date that the financial statements are available to be issued.
Auditors' Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 32)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, the Independent Auditors' Report includes an opinion on the company's financial statements. The audit covers the balance sheets as of December 31, 2024, and 2023, along with the statements of operations, stockholder's equity, and cash flows for the years ended December 31, 2024, 2023, and 2022, and related notes. The auditor's opinion states that the financial statements present fairly the financial position of Counselor Realty as of December 31, 2024 and 2023, and the results of its operations and cash flows for the years ending December 31, 2024, 2023 and 2022, in accordance with GAAP (accounting principles generally accepted in the United States of America).
The report also outlines the responsibilities of both the management and the auditors. Management is responsible for preparing and fairly presenting the financial statements according to GAAP, including internal controls. They must also evaluate conditions that might raise doubts about the company's ability to continue as a going concern within one year. The auditors are responsible for obtaining reasonable assurance that the financial statements are free from material misstatement, whether due to fraud or error, and for issuing a report that includes their opinion.
The auditors' responsibilities include exercising professional judgment, maintaining skepticism, identifying and assessing risks of material misstatement, obtaining an understanding of internal control, evaluating accounting policies, and concluding whether there are conditions that raise doubt about the company's ability to continue as a going concern. The audit involves examining evidence regarding amounts and disclosures in the financial statements on a test basis. This information is crucial for prospective franchisees to assess the financial health and stability of Counselor Realty before investing in a franchise.