What is the auditor's objective in auditing the Crave Franchising, LLC financial statements?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
tatement of Cash Flows | Page 6 | | Notes to the Financial Statements | Page 7 |
Report of Independent Auditors
To the Member of Crave Franchising, LLC
Opinion
We have audited the accompanying financial statements of Crave Franchising, LLC, (the Company), a Wyoming limited liability company, which comprise Balance sheet as of December 31, 2024, 2023, and 2022, and the related statement of operations and member's equity and cash flows for the year ended December 31, 2024, and the related notes to the financial statements.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2024, 2023, and 2022, and the results of its operations and its cash flows for the year ended December 31, 2024, in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditor's 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 these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes 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.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the auditor's objective is to express an opinion on the fairness of Crave's financial statements. Specifically, the auditor examines the balance sheets as of December 31, 2024, 2023, and 2022, along with the statements of operations, member's equity, and cash flows for the year ended December 31, 2024, including related notes. The auditor's opinion confirms whether these financial statements present fairly Crave's financial position, results of operations, and cash flows in accordance with accounting principles generally accepted in the United States of America.
The auditor conducts the audit in accordance with auditing standards generally accepted in the United States of America (GAAS). These standards require the auditor to be independent of Crave and to meet ethical responsibilities. The auditor's report also describes the responsibilities of Crave's management, which include preparing the financial statements, maintaining internal controls, and evaluating Crave's ability to continue as a going concern for one year after March 24, 2025.
For a potential franchisee, this audit provides assurance that Crave's financial statements have been examined by an independent party and conform to standard accounting practices. This helps in making an informed investment decision by providing a level of confidence in the financial information presented. It's important to review the auditor's opinion and the financial statements carefully to understand Crave's financial health and performance over the past three years.