Does the accounting firm express an opinion on the supplementary information for Endless Summer Sweets?
Endless_Summer_Sweets Franchise · 2024 FDDAnswer from 2024 FDD Document
The supplementary information included in Schedule I is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from, and relates directly to, the underlying accounting and other records used to prepare the financial statements. The supplementary information has been subjected to the review procedures applied in our review of the basic financial statements. We are not aware of any material modifications that should be made to the supplementary information. We have not audited the supplementary information and do not express an opinion on such information.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 38)
What This Means (2024 FDD)
According to Endless Summer Sweets's 2024 Franchise Disclosure Document, the accounting firm FACT Professional, Inc. does not express an opinion on the supplementary information included in Schedule I. While the supplementary information is subjected to review procedures applied during the audit of the basic financial statements, it is presented for additional analysis purposes and is the responsibility of Endless Summer Sweets's management.
FACT Professional, Inc. states that the supplementary information was derived from the underlying accounting and other records used to prepare the financial statements. They also state that they are not aware of any material modifications that should be made to the supplementary information. However, the firm explicitly states that they have not audited the supplementary information and, therefore, do not express an opinion on it.
This means that while the accounting firm has reviewed the supplementary information for any obvious inconsistencies, they have not performed a full audit to verify its accuracy. A prospective Endless Summer Sweets franchisee should understand that the supplementary information has not been as rigorously vetted as the main financial statements, which have been audited and are subject to an opinion.