Are the financial statements for Punch King Fitness as of December 31, 2023 audited or unaudited?
Punch_King_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
To the Board of Directors and Shareholders Punch King Fitness, Inc.
Opinion
We have audited the accompanying financial statements of Punch King Fitness, Inc., which comprise the balance sheet as of December 31, 2023, and the related statements of income and retained earnings and cash flows for the year 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 Punch King Fitness, Inc. as of December 31, 2023, and the results of its operations and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audit 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 Punch King Fitness, Inc. and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2024 FDD)
According to Punch King Fitness's 2024 Franchise Disclosure Document, the financial statements as of December 31, 2023, have been audited. The presence of an Independent Auditor's Report indicates that an audit was conducted by an independent accounting firm. This report expresses an opinion on the fairness of the presentation of Punch King Fitness's financial position, results of operations, and cash flows for the year ended December 31, 2023, in accordance with accounting principles generally accepted in the United States of America.
The Independent Auditor's Report confirms that the audit was performed following generally accepted auditing standards in the United States of America. These standards require the auditor to be independent and to obtain sufficient and appropriate audit evidence to provide a basis for their opinion. The audit includes assessing the risks of material misstatement of the financial statements, examining evidence on a test basis, and evaluating the appropriateness of accounting policies and the reasonableness of significant accounting estimates.
The inclusion of an audited financial statement provides a higher level of assurance to potential franchisees regarding the accuracy and reliability of Punch King Fitness's reported financial performance. This is because an independent auditor has reviewed the financial statements and provided an opinion on whether they fairly present the company's financial position. This contrasts with unaudited financial statements, which are prepared by the company's management without independent verification and may not provide the same level of confidence.