What does the auditor believe regarding the audit evidence obtained for C12 Group?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of The C12 Group, LLC and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, the auditor, ADKF, P.C., believes that the audit evidence obtained is sufficient and appropriate to provide a basis for their audit opinion on the financial statements of The C12 Group, LLC. The audit was conducted in accordance with auditing standards generally accepted in the United States of America, and the auditor is required to be independent of the company while meeting ethical responsibilities relevant to the audit.
The auditor's responsibilities include obtaining reasonable assurance about whether the financial statements are free from material misstatement, whether due to fraud or error, and issuing an auditor's report that includes their opinion. While reasonable assurance is a high level of assurance, it is not absolute, and there is no guarantee that an audit will always detect a material misstatement. The auditor exercises professional judgment and maintains professional skepticism throughout the audit, identifies and assesses risks of material misstatement, and designs and performs audit procedures responsive to those risks, including examining evidence regarding amounts and disclosures in the financial statements on a test basis.
The auditor also obtains an understanding of internal control relevant to the audit in order to design appropriate audit procedures, but not for the purpose of expressing an opinion on the effectiveness of C12 Group's internal control. The appropriateness of accounting policies used, the reasonableness of significant accounting estimates made by management, and the overall presentation of the financial statements are also evaluated. The auditor concludes whether there are conditions or events that raise substantial doubt about C12 Group's ability to continue as a going concern for a reasonable period of time.
Prospective franchisees should understand that the auditor's opinion provides a level of confidence in the accuracy and reliability of the financial statements presented. However, it is not a guarantee against all misstatements or fraud. Franchisees should carefully review the financial statements and consult with their own financial advisors to assess the financial health and stability of C12 Group.