Who is responsible for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of Crave Franchising, LLC's financial statements?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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 for one year after March 24, 2025.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the responsibility for the design, implementation, and maintenance of internal controls relevant to the preparation and fair presentation of the company's financial statements lies with the management of Crave Franchising, LLC. This encompasses ensuring the financial statements are free from material misstatements, whether due to fraud or error.
Management's responsibilities extend to preparing and fairly presenting the financial statements in accordance with accounting principles generally accepted in the United States of America. This includes evaluating conditions or events that could raise doubts about Crave's ability to continue as a going concern for one year after March 24, 2025.
An independent auditor then audits these financial statements. The auditor's role is to express an opinion on whether the financial statements present fairly the financial position, results of operations, and cash flows of Crave Franchising, LLC, in accordance with accounting principles generally accepted in the United States of America. The auditor conducts their audit in accordance with auditing standards generally accepted in the United States of America, ensuring independence and adherence to ethical requirements.