In the C12 Group FDD, what provides the basis for the audit opinion?
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 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.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, the basis for the audit opinion is derived from conducting audits in accordance with auditing standards generally accepted in the United States of America. The auditor's responsibilities under these standards are detailed in the 'Auditor's Responsibilities for the Audit of the Financial Statements' section of the report.
The auditor is required to be independent of C12 Group and to adhere to ethical requirements. The auditor expresses the belief that the audit evidence obtained is sufficient and appropriate to provide a foundation for the audit opinion. This indicates that the auditor has gathered enough relevant and reliable evidence through their auditing procedures to support their professional judgment on the fairness of the financial statements.
For a prospective C12 Group franchisee, this means that the financial statements have been examined by an independent party using established auditing standards. This process aims to provide a reasonable level of assurance that the financial information presented by C12 Group is fairly stated and free from material misstatements. Reviewing the auditor's report and understanding the basis for their opinion can help a potential franchisee assess the credibility and reliability of the financial information provided in the FDD.