Are there any qualifications or exceptions in the Dermani Medspa auditor's report?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
To the Member of dermani MEDSPA Franchising, LLC Windermere, Florida
Opinion
We have audited the accompanying financial statements of dermani MEDSPA Franchising, LLC, which comprise the balance sheet as of December 31, 2024, and the related statements of operations and changes in member's deficit and cash flows for the year then ended, and the related notes to the financial statements.
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of dermani MEDSPA Franchising, LLC as of December 31, 2024, and the results of its operations and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of dermani MEDSPA Franchising, LLC and to meet our other ethical 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.
Auditor's Responsibilities for the Audit of the Financial Statements
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 66)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, the independent auditor's report for the financial statements as of December 31, 2024, states that the financial statements present fairly, in all material respects, the financial position of Dermani Medspa Franchising, LLC. This indicates a clean opinion, meaning the auditors found no material misstatements or exceptions in the financial statements. The audit was conducted in accordance with auditing standards generally accepted in the United States of America (GAAS).
The auditor's report outlines the responsibilities of both the management and the auditor. Management is responsible for preparing and fairly presenting the financial statements, including internal controls. The auditor's responsibility is to obtain reasonable assurance about whether the financial statements are free from material misstatement and to issue a report including their opinion. Reasonable assurance implies a high level of confidence but not an absolute guarantee that all misstatements will be detected.
The report also clarifies that the auditor's procedures include exercising professional judgment, assessing risks of material misstatement, understanding internal controls (though not expressing an opinion on their effectiveness), evaluating accounting policies, and assessing the reasonableness of management's estimates. The auditor must also consider whether there are conditions that raise substantial doubt about Dermani Medspa's ability to continue as a going concern. The audit reports for the 2022 and 2023 financial statements also contain similar opinions, indicating consistent financial reporting over the years examined.