What auditing standards were followed when auditing the supplementary information for the C12 Group?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The consolidating balance sheet, consolidating statement of operations and members' capital, and the condensed consolidated statements of operations and members' capital on pages 11 through 13, respectively, are presented for purposes of additional analysis and is not a required part of the consolidated financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the consolidated financial statements. The information for the year ended December 31, 2022 has been subjected to the auditing procedures applied in the audit of the 2021 consolidated financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the consolidated financial statements or to the consolidated financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information for the year ended December 31, 2022 is fairly stated in all material respects in relation to the 2022 consolidated financial statements as a whole. The comparative information for the years ended December 31, 2018 through 2021 has been derived from The C12 Group, LLC's 2018 through 2021 financial statements of which an unmodified opinion was expressed on those financial statements.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, the supplementary information for the year ended December 31, 2022, was subjected to auditing procedures in accordance with auditing standards generally accepted in the United States of America. These procedures were applied during the audit of the 2021 consolidated financial statements, along with certain additional procedures. These additional procedures included comparing and reconciling the supplementary information directly to the underlying accounting and other records used to prepare the consolidated financial statements, or to the consolidated financial statements themselves.
The auditor's report indicates that the supplementary information for the year ended December 31, 2022, is fairly stated in all material respects in relation to the 2022 consolidated financial statements as a whole. Additionally, the comparative information for the years ended December 31, 2018, through 2021 was derived from C12 Group, LLC's 2018 through 2021 financial statements, on which an unmodified opinion was expressed.
This means that a prospective C12 Group franchisee can have some confidence that the supplementary financial information has been reviewed by an independent auditor using standard auditing practices. This review provides a level of assurance that the information is presented fairly and is consistent with the company's underlying financial records. The use of generally accepted auditing standards indicates a commitment to transparency and accuracy in financial reporting, which is a positive sign for potential investors.