What internal controls is the management of Zoomin Groomin USA LLC responsible for designing, implementing, and maintaining regarding financial statements?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
Management is responsible for the preparation and fair presentation of the financial statements in accordance with generally accepted accounting principles in the Unites 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 Zoomin Groomin USA 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 9 — 01. Financial Statements and Exhibits. (FDD pages 68–156)
What This Means (2025 FDD)
According to Zoomin Groomin's 2025 Franchise Disclosure Document, the management of Zoomin Groomin USA LLC is responsible for the design, implementation, and maintenance of internal controls relevant to the preparation and fair presentation of financial statements. These controls are designed to ensure that the financial statements are free from material misstatement, whether due to fraud or error. This responsibility is in accordance with generally accepted accounting principles in the United States of America.
In preparing the financial statements, Zoomin Groomin's 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. This evaluation is a critical component of ensuring the accuracy and reliability of the financial statements.
An independent auditor, DASH Business Solutions, LLC, audits Zoomin Groomin's financial statements. The auditor's role is to obtain reasonable assurance about whether the financial statements are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes their opinion. However, the auditor does not express an opinion on the effectiveness of Zoomin Groomin USA LLC's internal control.
For a prospective franchisee, this indicates that Zoomin Groomin's financial reporting is subject to internal controls designed and maintained by its management, and is also subject to an independent audit. Franchisees can review the audited financial statements to gain insight into the financial health and stability of Zoomin Groomin.