What should auditors conclude regarding Brain Balance's ability to continue as a going concern?

According to Brain Balance's 2025 Franchise Disclosure Document, the auditor's responsibility includes concluding 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.

The auditor's role involves exercising professional judgment and maintaining professional skepticism throughout the audits. They identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. These procedures include examining evidence regarding the amounts and disclosures in the financial statements on a test basis.

Furthermore, the auditor obtains an understanding of internal control relevant to the audits to design appropriate audit procedures, though they do not express an opinion on the effectiveness of the company's internal control. They evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as the overall presentation of the financial statements. The auditor is also required to communicate with those charged with governance regarding the scope and timing of the audits, significant audit findings, and certain internal control-related matters identified during the audits.