When auditing Bhc's financial statements, is the purpose to express an opinion on the effectiveness of BHC USA LLC's internal control?

According to Bhc's 2025 Franchise Disclosure Document, the audit of the company's financial statements does not aim to provide an opinion on the effectiveness of BHC USA LLC's internal control. The purpose of the audit is to obtain reasonable assurance that the financial statements are free from material misstatement, whether due to fraud or error. The auditor's procedures include understanding internal control relevant to the audit to design appropriate procedures, but not to express an opinion on its effectiveness.

Specifically, the auditor's responsibilities include exercising professional judgment, assessing risks of material misstatement, examining evidence on a test basis, and evaluating the appropriateness of accounting policies and the reasonableness of management's estimates. The auditor also determines whether there are conditions that raise substantial doubt about Bhc's ability to continue as a going concern. The audit is conducted in accordance with generally accepted auditing standards.

This means that while the auditors will gain an understanding of Bhc's internal controls as part of their audit, they are not specifically evaluating or attesting to how well those controls function. A prospective franchisee should be aware that the financial statements provide an opinion on the fairness of the financial position, results of operations, and cash flows of Bhc, but not on the effectiveness of its internal controls.