Are there any disclaimers related to the Dermani Medspa financial statements?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
cal responsibilities, in accordance with the relevant ethical requirements relating to our audit. 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.
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.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 66)
What This Means (2025 FDD)
According to the 2025 Dermani Medspa FDD, the financial statements are accompanied by an Independent Auditor's Report, which includes several disclaimers and explanations regarding the audit process and the responsibilities of both management and the auditor. The auditor's opinion states that the financial statements present fairly the financial position of Dermani Medspa Franchising, LLC as of December 31, 2024, and the results of its operations and cash flows for the year then ended, in accordance with accounting principles generally accepted in the United States of America. However, this opinion is based on certain limitations and responsibilities outlined in the report.
The auditor's report clarifies that their objectives are to obtain reasonable assurance that the financial statements are free from material misstatement, whether due to fraud or error. While reasonable assurance is considered a high level of assurance, it is not absolute, and there is no guarantee that an audit conducted according to Generally Accepted Auditing Standards (GAAS) will always detect a material misstatement. The report also notes that the risk of not detecting a material misstatement resulting from fraud is higher than that of error because fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Furthermore, the Dermani Medspa FDD emphasizes that management is responsible for preparing and fairly presenting the financial statements in accordance with accounting principles generally accepted in the United States of America. This includes designing, implementing, and maintaining internal control relevant to preparing financial statements free from material misstatement. Management is also required to evaluate whether there are conditions or events that raise substantial doubt about Dermani Medspa's ability to continue as a going concern for one year after the financial statements are available. These disclaimers and explanations are standard in audited financial statements and provide transparency regarding the audit's scope and limitations.