Who selects the independent public accounting firm for Dermani Medspa's annual audit?
Dermani_Medspa 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 dermani MEDSPA Franchising, LLC's ability to continue as a going concern for one year after the date that the financial statements are available to be issued.
Auditor's Responsibilities for the Audit of the Financial Statements
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
The Dermani Medspa 2025 Franchise Disclosure Document (FDD) does not explicitly state who selects the independent public accounting firm for the annual audit of Dermani Medspa Franchising, LLC. However, the FDD does include reports from Nichols, Cauley & Associates, LLC, an independent auditor, for the fiscal years ending December 31, 2022, December 31, 2023 and December 31, 2024.
The FDD outlines the responsibilities of both the management and the auditor. Management is responsible for the preparation and fair presentation of the financial statements, including the design, implementation, and maintenance of internal controls. The auditor's responsibility is to express an opinion on these financial statements based on their audit, ensuring they are free from material misstatement.
While the FDD does not specify the selection process, it is common practice for the company's management or ownership to select the auditing firm. A prospective franchisee should seek clarification from Dermani Medspa regarding the selection process of the independent auditor to fully understand the procedures in place for financial oversight and transparency.