When auditing Body20's financial statements, what must be obtained regarding internal controls?

According to Body20's 2025 Franchise Disclosure Document, when an audit is performed, the auditor must obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate for the circumstances. However, the audit is not for the purpose of expressing an opinion on the effectiveness of Sequel Brands Holdings, LLC's internal control, and accordingly, no such opinion is expressed.

This means that while the auditor will review Body20's internal controls to plan the audit, the audit's focus is on the accuracy of the financial statements themselves, not on whether Body20's internal controls are perfect. The auditor's responsibility is to assess the risk of material misstatement in the financial statements, whether due to fraud or error, and to design audit procedures to address those risks.

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 ensures that any weaknesses or issues in internal controls that are discovered during the audit are brought to the attention of the appropriate parties for remediation.