Who bears the cost of an audit of a Learningrx franchise?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements, including omissions, are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards, we:
- Exercise professional judgment and maintain professional skepticism throughout the audit.
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of LearningRx Franchise Corporation's internal control. Accordingly, no such opinion is expressed.
- Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
- Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about LearningRx Franchise Corporation's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.
Springfield, Missouri
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
Based on the 2025 Learningrx Franchise Disclosure Document, the excerpts provided focus on the audits of Learningrx Franchise Corporation's financial statements. The excerpts detail the responsibilities of both the management and the independent auditors in preparing and auditing these financial statements. The independent auditors, according to the document, aim to provide reasonable assurance that the financial statements are free from material misstatement.
However, the provided excerpts do not specify who bears the cost of an audit of a Learningrx franchise. The excerpts primarily discuss the audit of Learningrx Franchise Corporation's financial statements, outlining the responsibilities of the corporation's management and the independent auditors. The audit's objective is to ensure the financial statements are free from material misstatements, with the auditors issuing a report that includes their opinion.
To determine who bears the cost of an audit for a Learningrx franchise, a prospective franchisee should consult the franchise agreement or directly ask Learningrx for clarification. This information is crucial for understanding the financial obligations and responsibilities of the franchisee.