Does the audit of Carbones Pizzeria express an opinion on the effectiveness of the company's internal control?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. Accordingly, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the consolidated financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about M&T Pizza Incorporated and Subsidiaries ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.
Source: Item 22 — CONTRACTS (FDD page 30)
What This Means (2025 FDD)
According to the 2025 FDD, the independent auditor's report for Carbones Pizzeria does not express an opinion on the effectiveness of the company's internal control. The audit aims to understand internal control to design appropriate audit procedures, but not to provide an opinion on its effectiveness.
The auditor's responsibilities include evaluating the accounting policies and estimates made by management, as well as the overall presentation of the consolidated financial statements. They also determine whether there are conditions that raise substantial doubt about the company's ability to continue as a going concern.
The auditor is required to communicate with those in charge of governance regarding the audit's scope and timing, significant findings, and any internal control-related matters identified during the audit. However, the audit's primary goal is to express an opinion on the fairness of the financial statements, not on the effectiveness of internal controls.