What is management's responsibility regarding internal control relevant to the preparation of Healthsource Chiropractic's financial statements?

According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, management is responsible for the design, implementation, and maintenance of internal controls relevant to the preparation and fair presentation of the company's financial statements. This responsibility ensures that the financial statements are free from material misstatement, whether due to fraud or error. Management's role is crucial in maintaining the integrity and accuracy of the financial reporting process.

In addition to internal controls, Healthsource Chiropractic's management is also responsible for the fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America. Management must evaluate whether there are conditions or events that raise substantial doubt about the company's ability to continue as a going concern within one year after the date that the financial statements are available to be issued. This assessment is a critical component of their financial oversight.

The financial statements and related notes are representations of the company's management, who are accountable for their integrity and objectivity. These accounting policies must conform to generally accepted accounting principles and be consistently applied in the preparation of the financial statements. This ensures transparency and reliability in the company's financial reporting, which is essential for stakeholders and potential franchisees.