Who is responsible for the preparation and fair presentation of the Crave Franchising, LLC 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 preparing and fairly presenting the company's financial statements lies with the management of Crave Franchising, LLC. This encompasses ensuring the financial statements adhere to accounting principles generally accepted in the United States of America. Management is also tasked with designing, implementing, and maintaining internal controls relevant to preparing financial statements that are free from material misstatement, whether due to fraud or error.
This responsibility includes evaluating whether conditions or events, considered in the aggregate, raise substantial doubt about Crave's ability to continue as a going concern for one year after March 24, 2025. This forward-looking assessment is a critical component of financial statement preparation, ensuring that potential risks to the company's solvency are identified and disclosed.
An independent auditor's role is to audit these financial statements prepared by Crave's management and provide an opinion on whether they present fairly the company's financial position, results of operations, and cash flows in accordance with accounting principles generally accepted in the United States of America. The auditor's opinion adds credibility to the financial statements, but the underlying responsibility for their preparation and fair presentation remains with the company's management.