Who is responsible for the preparation and fair presentation of 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 is responsible for the preparation and fair presentation of the company's financial statements. This responsibility includes ensuring that the financial statements are in accordance with accounting principles generally accepted in the United States of America. Management is also responsible for the design, implementation, and maintenance of internal controls relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In addition to preparing the statements, HealthSource Chiropractic's management is required to 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 evaluation is a critical component of their responsibility to provide a fair and accurate representation of the company's financial position.
An independent auditor, such as Park & Illenberger, CPA's, Inc., audits these financial statements. While the auditor provides an opinion on the fairness of the presentation, the underlying responsibility for the accuracy and completeness of the financial statements rests with HealthSource Chiropractic's management. The auditor's role is to obtain reasonable assurance that the financial statements are free from material misstatement, but this does not relieve management of its primary responsibility.