What does the auditing firm believe regarding the audit evidence obtained for The C12 Group?

According to the 2025 FDD, the auditing firm, ADKF, P.C., believes that the audit evidence they obtained is sufficient and appropriate to provide a basis for their audit opinion on The C12 Group's financial statements. This opinion pertains to the balance sheets as of December 31, 2024 and 2023, and the related statements of operations, changes in members' equity, and cash flows for the years then ended. The audit was conducted following generally accepted auditing standards in the United States of America.

This statement indicates that the auditors have gathered enough reliable evidence through their auditing procedures to support their opinion on the fairness and accuracy of C12 Group's financial statements. The phrase "sufficient and appropriate" is a key concept in auditing, meaning the evidence is adequate in quantity (sufficient) and relevant and reliable in nature (appropriate). This gives potential franchisees some assurance that a qualified firm has reviewed the financial records.

The auditor's report expresses an opinion that the financial statements of C12 Group present fairly, in all material respects, the company's financial position as of December 31, 2024 and 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. This "fair presentation" opinion is the goal of an audit, and it suggests that the financial statements are free from material misstatements and conform to standard accounting practices.

It is important for a prospective C12 Group franchisee to understand the scope and limitations of an audit. While the audit provides reasonable assurance about the fairness of the financial statements, it is not an absolute guarantee of accuracy. The auditors' responsibilities include exercising professional judgment, assessing risks of material misstatement, and evaluating the appropriateness of accounting policies. The audit also considers whether there are conditions that raise substantial doubt about C12 Group's ability to continue as a going concern. This information, taken as a whole, can help a potential franchisee make a more informed decision but should not be the only factor considered.