Are the financial statements for Extreme Art Studio audited?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
isee organizations.
ITEM 21 FINANCIAL STATEMENTS
Exhibit D contains the financial statements required to be included with this Franchise Disclosure Document: our unaudited financial statements as of January 31, 2024, as well as audited balance sheet as of December 31, 2023. Our fiscal year end is December 31st.
EXHIBIT D
FINANCIAL STATEMENTS
UNAUDITED FINANCIALS
THESE FINANCIAL STATEMENTS ARE PREPARED WITHOUT AN AUDIT. PROSPECTIVE FRANCHISEES OR SELLERS OF FRANCHISES SHOULD BE ADVISED THAT NO CERTIFIED PUBLIC ACCOUNTANT HAS AUDITED THESE FIGURES OR EXPRESSED HIS/HER OPINION WITH REGARD TO THE CONTENT OR FORM.
| Total | ||
|---|---|---|
| ASSETS | , | |
| Current Assets | ||
| Bank Accounts | ||
| 1008 Wells Fargo Extreme Art 3537Checking | 15,001.21 | |
| Total Bank Accounts | $ | 15,001.21 |
| Accounts Receivable | ||
| 1100 Accounts Receivable | 0.00 | |
| Total Accounts Receivable | $ | 0.00 |
| Other Current Assets | ||
| Total Other Current Assets | $ | 0.00 |
| Total Current Assets | $ | 15,001.21 |
| Fixed Assets |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2024 FDD)
According to the 2024 Franchise Disclosure Document, Extreme Art Studio includes both audited and unaudited financial statements. Specifically, the balance sheet as of December 31, 2023, is audited, and the FDD includes an independent auditor's report expressing an opinion on these statements.
An independent auditor has reviewed the financial statements of Extreme Art Studio Franchising, LLC, and has issued an opinion stating that the financial statements present fairly the company's financial position as of December 31, 2023, 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 auditor's report outlines the responsibilities of both the management and the auditor in preparing and auditing the financial statements.
However, the FDD also states that the document contains unaudited financial statements as of January 31, 2024. The FDD includes a disclaimer that no certified public accountant has audited these figures or expressed an opinion on them. This means that while some financial information has been verified by an independent auditor, prospective franchisees should be aware that other financial data has not undergone the same level of scrutiny.