What is Focalpoint Coaching's policy regarding the use of estimates and assumptions in preparing financial statements?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
In performing an audit in accordance with generally accepted auditing standards, we:
- Exercise professional judgment and maintain professional skepticism throughout the audit.
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of FocalPoint Coaching, Inc.'s internal control. Accordingly, no such opinion is expressed.
- Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
- Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about FocalPoint Coaching, Inc.'s ability to continue as a going concern for a reasonable period of time.
Source: Item 21 — Financial Statements (FDD page 56)
What This Means (2025 FDD)
According to Focalpoint Coaching's 2025 Franchise Disclosure Document, the company's financial statements are audited by an independent auditor. As part of the audit process, the auditor evaluates the reasonableness of significant accounting estimates made by Focalpoint Coaching's management. This evaluation is a standard procedure in accordance with generally accepted auditing standards. The auditor's role is to obtain reasonable assurance that the financial statements are free from material misstatement, whether due to fraud or error.
The auditor's responsibilities include exercising professional judgment and maintaining professional skepticism throughout the audit. They identify and assess the risks of material misstatement of the financial statements, examining evidence regarding the amounts and disclosures in the statements on a test basis. The auditor also obtains an understanding of internal control relevant to the audit to design appropriate audit procedures.
The auditor's report expresses an opinion on whether the financial statements present fairly the financial position, results of operations, and cash flows of Focalpoint Coaching in accordance with accounting principles generally accepted in the United States of America. This opinion provides assurance to users of the financial statements, including potential franchisees, that the information presented is reliable and fairly stated. Rich, Wightman & Company, CPAs, LLC, served as the independent auditor for Focalpoint Coaching, Inc. The audit was conducted as of February 26, 2025.