Does the auditor express an opinion on the effectiveness of C12 Group's internal control?

According to the 2025 C12 Group Franchise Disclosure Document, the auditor does not express an opinion on the effectiveness of the company's internal control. While the auditor obtains an understanding of internal control relevant to the audit to design appropriate audit procedures, this is explicitly not for the purpose of expressing an opinion on the effectiveness of C12 Group's internal control.

This means that the audit focuses on whether the financial statements are free from material misstatement, rather than assessing the strength and reliability of C12 Group's internal controls. The auditor's procedures are designed to identify and assess risks of material misstatement, examine evidence supporting financial statement amounts, evaluate accounting policies, and assess the overall presentation of the financial statements.

For a prospective franchisee, this implies that the financial audit provides assurance on the accuracy of the financial statements presented, but it does not offer any guarantee about the effectiveness of C12 Group's internal controls. A potential franchisee may want to independently assess C12 Group's internal controls through due diligence or seek additional information from the franchisor regarding their internal control environment.