What is management responsible for designing, implementing, and maintaining regarding Healthsource Chiropractic's financial statements?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
Management is responsible for the preparation and fair presentation of the 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 financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about HealthSource Chiropractic, LLC's ability to continue as a going concern within one year after the date that the financial statements are available to be issued.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to HealthSource Chiropractic's 2025 Franchise Disclosure Document, management holds key responsibilities concerning the company's financial statements. Specifically, management is responsible for the preparation and fair presentation of these financial statements, ensuring they align with accounting principles generally accepted in the United States of America. This encompasses not only the accurate compilation of financial data but also its clear and transparent presentation.
Furthermore, HealthSource Chiropractic's management is tasked with designing, implementing, and maintaining internal controls. These controls are crucial for ensuring the financial statements are free from material misstatements, whether those misstatements arise from fraud or error. This aspect highlights the proactive role management must take in establishing and upholding systems that safeguard the integrity of financial reporting.
In addition to these duties, management is required to assess HealthSource Chiropractic's ability to continue as a going concern. This involves evaluating conditions or events that could raise substantial doubt about the company's viability within one year after the financial statements are issued. This forward-looking responsibility ensures that potential risks to the company's financial health are identified and addressed in a timely manner.