What is the auditor's responsibility concerning internal controls during the Card My Yard audit?

According to Card My Yard's 2025 Franchise Disclosure Document, the auditor's responsibility regarding internal controls is specifically defined. The auditor's role is to gain an understanding of internal control relevant to the audit to design appropriate audit procedures, but not to express an opinion on the effectiveness of the company's internal control. Therefore, the auditor will not provide an opinion on whether Card My Yard's internal controls are effective.

This means that while the auditor will assess Card My Yard's internal controls to inform their audit procedures, franchisees should not expect the audit to provide assurance about the overall quality or effectiveness of Card My Yard's internal control systems. The audit is focused on the financial statements, not on the internal controls themselves.

Furthermore, the auditor is required to communicate with those charged with governance regarding the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters identified during the audit. This communication ensures that key stakeholders are informed of important aspects of the audit and any significant issues that arise. However, this communication does not change the fact that the audit's primary purpose is not to evaluate or provide assurance on internal controls.