During an audit of Buff City Soap, is an opinion expressed on the effectiveness of the company's internal control?
Buff_City_Soap Franchise · 2025 FDDAnswer from 2025 FDD Document
cember 29, 2024, December 31, 2023 and January 1, 20236 | | | Notes to the Financial Statements7−15 | |
Report of Independent Auditors
To the Management of Buff City Soap Franchising, LLC
Opinion
We have audited the accompanying financial statements of Buff City Soap Franchising, LLC (the "Company"), which comprise the balance sheets as of December 29, 2024 and December 31, 2023, and the related statements of operations, of member's deficit and of cash flows for the years then ended, including the related notes (collectively referred to as the "financial statements").
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as of December 29, 2024 and December 31, 2023, and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (US GAAS). Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Company and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Other Matter
The financial statements of the Company for the year ended January 1, 2023 were audited by other auditors whose report, dated September 29, 2023, expressed an unmodified opinion on those statements.
Source: Item 6 — , Securities Offering Fee, in the amount column is revised to state the following: (FDD pages 216–303)
What This Means (2025 FDD)
According to the 2025 FDD, the independent auditor's report for Buff City Soap Franchising, LLC does not express an opinion on the effectiveness of the company's internal control. The report focuses on the fairness of the presentation of the company's financial statements.
The audit, conducted according to generally accepted auditing standards in the United States of America (US GAAS), assesses the balance sheets as of December 29, 2024, and December 31, 2023, along with the related statements of operations, member's deficit, and cash flows for the years then ended. The auditors' responsibility includes communicating significant audit findings and certain internal control-related matters identified during the audit to those charged with governance.
Management is responsible for designing, implementing, and maintaining internal control relevant to the preparation and fair presentation of financial statements. However, the auditor's opinion is specifically on whether the financial statements present fairly the company's financial position, results of operations, and cash flows, not on the effectiveness of the internal controls themselves. A prospective franchisee should be aware that while the audit provides assurance on the financial statements, it does not offer a direct assessment of the strength of Buff City Soap's internal controls.