When auditing Aira Fitness, is the purpose to express an opinion on the effectiveness of the company's internal control?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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 the Company's internal control. Accordingly, no such opinion is expressed.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, the purpose of the audit is not to express an opinion on the effectiveness of the company's internal control. The audit aims to design procedures appropriate to the circumstances.
The audit procedures include identifying and assessing the risks of material misstatement of the financial statements, whether due to fraud or error, and designing and performing audit procedures responsive to those risks, including examining evidence regarding the amounts and disclosures in the financial statements. The auditor will 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.
The auditor will conclude whether, in their judgment, there are conditions or events that raise substantial doubt about Aira Fitness's ability to continue as a going concern for a reasonable period. The auditor is required to communicate with those charged with governance regarding the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters identified during the audit.