Are the financial statements for Engineering For Kids International, LLC audited?
Engineering_For_Kids Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 21: FINANCIAL STATEMENTS]
ITEM 21 FINANCIAL STATEMENTS
Exhibit E to this disclosure document contains the following financial statements: the audited financial statements for Engineering for Kids International, LLC as of December 31, 2022, December 31, 2023 and December 31, 2024. Our fiscal year end is December 31.
[Item 22: CONTRACTS]
INDEPENDENT AUDITOR'S REPORT
To the Member of Engineering for Kids International, LLC
Opinion
We have audited the accompanying financial statements of Engineering for Kids International, LLC which comprise the balance sheet as of December 31, 2024, and the related statements of operations, member's equity, and cash flows for the year 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 Engineering for Kids International, 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. 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 Engineering for Kids International, LLC 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.
Prior Period Financial Statements
The financial statements of Engineering for Kids International, LLC as of December 31, 2023 and 2022 were audited by other auditors whose reports dated May 17, 2024 and June 20, 2023 expressed an unmodified opinion on those statements.
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 52–53)
What This Means (2025 FDD)
According to Engineering For Kids' 2025 Franchise Disclosure Document, the financial statements for Engineering For Kids International, LLC are indeed audited. Item 21 explicitly states that Exhibit E contains the audited financial statements for the company as of December 31, 2022, December 31, 2023, and December 31, 2024. The company's fiscal year ends on December 31.
Furthermore, the Independent Auditor's Report included in Item 22 confirms that an audit of the financial statements was conducted. The report includes an opinion that the financial statements present fairly the financial position of Engineering For Kids International, 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. The report also mentions that the financial statements for the years 2023 and 2022 were audited by other auditors, with reports issued on May 17, 2024, and June 20, 2023, respectively, expressing an unmodified opinion on those statements.
This is a positive sign for prospective franchisees, as audited financial statements provide a higher level of assurance regarding the accuracy and reliability of the financial information presented. The audit is conducted in accordance with auditing standards generally accepted in the United States of America, and the auditor is required to be independent of Engineering For Kids International, LLC. The auditor's responsibilities include obtaining reasonable assurance about whether the financial statements are free from material misstatement, whether due to fraud or error, and issuing an auditor's report that includes their opinion.
For a potential franchisee, this means they have access to independently verified financial information about Engineering For Kids, which can aid in their decision-making process. Reviewing these audited statements can provide insights into the company's financial health, performance, and stability, helping the franchisee assess the risks and opportunities associated with investing in an Engineering For Kids franchise.