What is the auditor's responsibility regarding Annex Brands' ability to continue as a going concern?

According to Annex Brands' 2025 Franchise Disclosure Document, the auditor has a responsibility to conclude whether there are conditions or events that raise substantial doubt about the company's ability to continue as a going concern for a reasonable period of time. This assessment is made by considering all conditions and events in the aggregate.

To fulfill this responsibility, the auditor must exercise professional judgment and maintain professional skepticism throughout the audit. They identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. The auditor also evaluates 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 consolidated financial statements.

Furthermore, 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. This communication ensures that relevant parties are informed about the auditor's assessment and findings regarding Annex Brands' financial health and ability to continue operating.