What does the preparation of financial statements require of Mr. Sandless' management?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basisfor 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 frommaterial 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 Mr. Sandless Franchise, LLC'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
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.
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 41–42)
What This Means (2025 FDD)
According to Mr. Sandless' 2025 Franchise Disclosure Document, management is responsible for the preparation and fair presentation of the financial statements. This includes ensuring the statements align with accounting principles generally accepted in the United States of America. Management must also design, implement, and maintain internal controls relevant to preparing financial statements that are free from material misstatements, whether due to fraud or error.
Mr. Sandless' 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 the financial statements are available. This assessment is crucial for stakeholders to understand the company's financial health and stability.
In addition, the preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. These estimates are a standard part of financial reporting, but it's important to recognize that actual results could differ from these estimates.