What is management responsible for regarding internal controls related to Crave Cookies' financial statements?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
priate 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 accounting principles generally accepted in the United States of America, 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
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 Crave Cookies Franchising, LLC's ability to continue as a going concern for one year after the date that
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, management is responsible for several key aspects related to the company's financial statements. Specifically, management is tasked with the preparation and fair presentation of these financial statements, ensuring they align with accounting principles generally accepted in the United States of America. This includes the design, implementation, and continuous maintenance of internal controls.
These internal controls are crucial for ensuring that the financial statements are free from material misstatements, whether these misstatements arise from fraud or unintentional errors. In essence, Crave Cookies' management must establish and uphold a system of checks and balances to guarantee the accuracy and reliability of the financial information presented.
Furthermore, in preparing the financial statements, the management of Crave Cookies is required to assess whether there are any conditions or events that, when considered together, could raise significant doubts about the company's ability to continue operating as a going concern within one year after the financial statements are issued. This forward-looking evaluation is a critical component of their responsibilities, ensuring transparency and providing stakeholders with a clear understanding of the company's financial health and stability.