What accounting principles were used in the preparation of Devon Creek Franchise Group, LLC's financial statements, according to the opinion?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
ember Devon Creek Franchise Group, LLC Charlotte, NC
Opinion
We have audited the accompanying financial statements of Devon Creek Franchise Group, LLC, comprise the balance sheet as of December 31, 2023, and the related statements of operations, member's equity, and cash flows for the nine month period then ended, and the related notes to the financial statements.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Devon Creek Franchise Group, LLC as of December 31, 2023, and the related statements of operations, member's equity and cash flows for the nine month period then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audits in accordance with auditing standards generally accepted in the United States of America. 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 the Company and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 45)
What This Means (2024 FDD)
According to Devon Creek's 2024 Franchise Disclosure Document, the financial statements of Devon Creek Franchise Group, LLC were prepared in accordance with accounting principles generally accepted in the United States of America. This is according to the independent auditor's opinion included in the FDD. The audit covered the balance sheet as of December 31, 2023, and the related statements of operations, member's equity, and cash flows for the nine-month period then ended, along with related notes.
This means that Devon Creek's financial reporting adheres to a standardized framework, ensuring consistency and comparability. The auditor's opinion confirms that the financial statements present fairly the financial position of Devon Creek as of December 31, 2023, and its operations, equity, and cash flows for the nine-month period then ended. This provides potential franchisees with a level of confidence that the financial information is reliable and has been vetted by an independent expert.
The use of generally accepted accounting principles (GAAP) is a standard practice for franchise companies, as it promotes transparency and allows prospective franchisees to make informed decisions. The auditor also stated that they conducted their audits in accordance with auditing standards generally accepted in the United States of America. This further validates the credibility of the financial statements, as the audit process itself adheres to established professional standards.