In auditing Kidokinetics' financial statements, what must be concluded regarding the company's ability to continue as a going concern?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
To the Members Kidokinetics Franchise LLC Weston, Florida
Opinion
We have audited the accompanying financial statements of Kidokinetics Franchise LLC, which comprise the balance sheets as of December 31, 2023, 2022, and 2021, and the related statements of operations, members' equity (deficit), and cash flows for the years then ended, and the related notes to the financial statements.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Kidokinetics Franchise LLC as of December 31, 2023, 2022, and 2021, and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Company and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Responsibilities of Management for the Financial Statements
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 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.
Auditor's Responsibilities for the Audit of the Financial Statements
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics' 2024 Franchise Disclosure Document, the independent auditor's report states that the financial statements of Kidokinetics Franchise LLC present fairly, in all material respects, the financial position as of December 31, 2023, 2022, and 2021. This opinion indicates that the auditors believe Kidokinetics' financial statements are presented accurately and in accordance with generally accepted accounting principles in the United States of America.
The management of Kidokinetics is responsible for evaluating 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. The auditor's responsibilities include concluding whether, in their judgment, there are conditions or events that raise substantial doubt about Kidokinetics' ability to continue as a going concern for a reasonable period of time.
The auditor's report included in Kidokinetics' FDD does not express any reservations or concerns about Kidokinetics' ability to continue as a going concern. The auditor is required to communicate any such concerns to those charged with governance. The absence of any such communication in the auditor's report suggests that the auditor did not identify any significant issues that would threaten Kidokinetics' ability to operate in the foreseeable future.