What is the purpose of understanding internal control during a Carbones Pizzeria audit?
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 purpose of understanding internal control during a Carbones Pizzeria audit is to design audit procedures that are appropriate for the circumstances. However, the audit is not for the purpose of expressing an opinion on the effectiveness of the company's internal control, and accordingly, no such opinion is expressed.
During the audit, the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management are evaluated. The overall presentation of the consolidated financial statements is also assessed. Auditors must conclude whether there are conditions or events that raise substantial doubt about M&T Pizza Incorporated and Subsidiaries' ability to continue as a going concern for a reasonable period of time.
Furthermore, the auditors are required to communicate with those charged with governance regarding the planned scope and timing of the audit. They must also report significant audit findings and certain internal control-related matters identified during the audit. This communication ensures that relevant parties are informed about the financial health and operational aspects of Carbones Pizzeria.