What is the auditor's responsibility in connection with their audit of Focus Cfo's consolidated financial statements, regarding the 'other information'?
Focus_Cfo Franchise · 2025 FDDAnswer from 2025 FDD Document
Management is responsible for the other information included in the Company's Franchise Disclosure Document. The other information comprises Franchise Disclosure Document, but it does not include the consolidated financial statements and our auditor's report thereon. Our opinion on the consolidated financial statements does not cover the other information, and we do not express an opinion or any form of assurance on it.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the consolidated financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
Source: Item 23 — Receipts (FDD pages 37–126)
What This Means (2025 FDD)
According to Focus Cfo's 2025 Franchise Disclosure Document, the auditor's responsibility regarding the 'other information' included in the document is limited. The 'other information' comprises the Franchise Disclosure Document, excluding the consolidated financial statements and the auditor's report. The auditor's opinion on the financial statements does not extend to this 'other information,' and they do not express any opinion or assurance on it.
Specifically, the auditor's responsibility is to read the 'other information' and consider whether there is a material inconsistency between it and the consolidated financial statements. They also assess if the 'other information' appears to be materially misstated.
If the auditor concludes that there is an uncorrected material misstatement in the 'other information' based on their work, they are required to describe it in their report. This means a Focus Cfo franchisee should understand that while the financial statements are audited, other parts of the FDD are only reviewed for consistency and potential misstatements, not subjected to a full audit.