What is the auditor's responsibility regarding the design of audit procedures for Carbones Pizzeria?

According to the 2025 FDD, the auditor's responsibility when auditing Carbones Pizzeria is to understand internal controls relevant to the audit. This understanding is used to design audit procedures that are appropriate for the given circumstances. However, the audit is not for the purpose of expressing an opinion on the effectiveness of the company's internal control, and therefore no such opinion is expressed.

In simpler terms, the auditor reviews Carbones Pizzeria's internal controls to figure out the best way to conduct the audit. This helps them determine what areas might need more attention. However, the auditor isn't giving a thumbs up or thumbs down on how well Carbones Pizzeria's internal controls work overall.

This is a standard practice in auditing. Auditors need to understand a company's internal controls to plan an effective audit, but the primary goal is to provide an opinion on the financial statements, not to evaluate the internal controls themselves. A prospective Carbones Pizzeria franchisee should be aware that while the financial statements are audited, there is no explicit guarantee about the strength of the company's internal controls from the auditor.