What is Golden Krust Caribbean Restaurant's obligation regarding evaluating its tax positions?
Golden_Krust_Caribbean_Restaurant Franchise · 2024 FDDAnswer from 2024 FDD Document
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 consolidated 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 Golden Krust Franchising, Inc.'s ability to continue as a going concern within one year after the date that the consolidated financial statements are available to be issued.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 35)
What This Means (2024 FDD)
The 2024 Franchise Disclosure Document (FDD) of Golden Krust Caribbean Restaurant includes an independent auditor's report. According to this report, the management of Golden Krust Caribbean Restaurant 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. This includes designing, implementing, and maintaining internal controls relevant to ensure these financial statements are free from material misstatement, whether due to fraud or error.
Furthermore, Golden Krust Caribbean Restaurant's management is required to evaluate whether there are conditions or events that, considered in the aggregate, raise substantial doubt about the company's ability to continue as a going concern within one year after the date the consolidated financial statements are available to be issued.
The auditors, CliftonLarsonAllen LLP, are responsible for expressing an opinion on these financial statements based on their audit. Their objectives are to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes their opinion. The auditors exercise professional judgment and maintain professional skepticism throughout the audit, assess the risks of material misstatement, and evaluate the appropriateness of accounting policies and the reasonableness of significant accounting estimates made by management.