What level of assurance does the audit provide regarding the Expense Reduction Analysts' financial statements?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
NTS OF CHANGES IN STOCKHOLDERS' EQUITY | 6 | | CONSOLIDATED STATEMENTS OF CASH FLOWS | 7 | | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | 8 |
CliftonLarsonAllen LLP CLAconnect.com
INDEPENDENT AUDITORS' REPORT
Board of Directors Expense Reduction Analysts, Inc. and Subsidiaries Addison, Texas
Report on the Audit of the Financial Statements Opinion
We have audited the accompanying consolidated financial statements of Expense Reduction Analysts, Inc. and subsidiaries, which comprise the consolidated balance sheets as of December 31, 2024 and 2023, and the related consolidated statements of operations, changes in stockholders' equity, and cash flows for the years 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 Expense Reduction Analysts, Inc. and subsidiaries as of December 31, 2024 and 2023, and the results of its operations and its cash flows for the years 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 (GAAS). Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the consolidated Financial Statements section of our report. We are required to be independent of Expense Reduction Analysts, Inc. and subsidiaries 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.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with accounting principles generally accepted in the United States of America, and for 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 consolidated financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about Expense Reduction Analysts, Inc.
Source: Item 23 — RECEIPTS (FDD pages 58–215)
What This Means (2025 FDD)
According to Expense Reduction Analysts' 2025 Franchise Disclosure Document, the audit of the company's financial statements aims to provide reasonable assurance that the statements are free from material misstatement, whether due to fraud or error. The independent auditor's report states that the auditors have audited the consolidated financial statements of Expense Reduction Analysts, Inc. and subsidiaries, which include balance sheets as of December 31, 2024 and 2023, and statements of operations, changes in stockholders' equity, and cash flows for the years then ended, along with related notes.
The audit conducted by CliftonLarsonAllen LLP was performed in accordance with generally accepted auditing standards in the United States of America (GAAS). The goal is to issue an auditor's report that includes their opinion on whether the financial statements present fairly the financial position, results of operations, and cash flows of Expense Reduction Analysts, Inc. and its subsidiaries. The audit involves procedures such as examining evidence on a test basis, evaluating accounting policies, and assessing significant estimates made by management.
It is important to note that while the audit provides reasonable assurance, it is not absolute assurance. This means there is no guarantee that the audit will always detect a material misstatement. The risk of not detecting a misstatement resulting from fraud is higher than that of an error, as fraud may involve intentional concealment. The auditors also evaluate whether there are conditions or events that raise substantial doubt about Expense Reduction Analysts' ability to continue as a going concern for a reasonable period of time.
For a prospective franchisee, this means that the financial statements have been examined by an independent accounting firm, providing a level of confidence in their accuracy and reliability. However, it is crucial to understand the limitations of an audit and to consider other factors when evaluating the financial health of Expense Reduction Analysts.