What is the auditor's responsibility regarding Deer Solution's internal controls during the financial audit?

According to Deer Solution's 2025 Franchise Disclosure Document, the auditor's responsibility regarding internal controls is to obtain an understanding of internal control relevant to the audit. This understanding is used to design audit procedures that are appropriate for the circumstances. However, the auditor's responsibility does not extend to expressing an opinion on the effectiveness of Deer Solution's internal control, and the auditor's report will not include such an opinion.

In simpler terms, the auditor reviews Deer Solution's internal controls to plan the audit effectively, but they do not provide a separate assessment or guarantee about how well those controls are working. The auditor's focus is on whether the financial statements are free from material misstatement.

For a prospective franchisee, this means the financial statements have been audited, but the audit does not provide assurance that Deer Solution's internal controls are effective. A franchisee may want to perform their own due diligence to assess the strength of Deer Solution's internal controls, as these controls can impact the accuracy and reliability of financial information.