For Counselor Realty, what is management's responsibility in ensuring the financial statements are free from material misstatement?

According to Counselor Realty's 2025 Franchise Disclosure Document, management has specific responsibilities for the company's financial statements. Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America (GAAP). This means that Counselor Realty's management must ensure the financial statements accurately reflect the company's financial position, results of operations, and cash flows.

In addition to preparing the statements, management is also responsible for the design, implementation, and maintenance of internal controls. These controls are relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. This implies that Counselor Realty's management must establish and maintain systems and procedures to prevent and detect errors or fraudulent activities that could significantly impact the accuracy of the financial statements.

Furthermore, Counselor Realty's 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. This forward-looking assessment is crucial for stakeholders to understand the long-term viability of the company. This is a standard practice, as management typically bears the responsibility for the integrity and accuracy of a company's financial reporting.