Does the auditor express an opinion on the effectiveness of Bevaris Alliance's internal control?

According to the 2024 FDD, the auditor who performed the audit of Bevaris Alliance's financial statements does not express an opinion on the effectiveness of the company's internal control. While the auditor obtains an understanding of internal control relevant to the audit to design appropriate audit procedures, this is not for the purpose of expressing an opinion on the effectiveness of Bevaris Alliance's internal control. Therefore, the auditor's report does not include such an opinion.

This means that the audit focused on whether the financial statements are fairly presented and free from material misstatement, rather than on evaluating the strength and reliability of Bevaris Alliance's internal controls. Internal controls are processes designed and implemented by management to provide reasonable assurance about the achievement of the entity's objectives with regard to reliability of financial reporting, effectiveness and efficiency of operations, and compliance with applicable laws and regulations.

Prospective franchisees should be aware that the absence of an opinion on internal controls does not necessarily indicate weaknesses, but rather reflects the scope of the audit performed. If a franchisee wants to gain more assurance about the effectiveness of Bevaris Alliance's internal controls, they may consider requesting additional information from the franchisor or conducting their own due diligence.