Does the auditor express an opinion on the effectiveness of Dryject Management, LLC's internal control?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
In performing an audit in accordance with generally accepted auditing standards, I:
- Exercise professional judgment and maintain professional skepticism throughout the audit.
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
- 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 DryJect Management, LLC's internal control. Accordingly, no such opinion is expressed.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, the auditor does not express an opinion on the effectiveness of DryJect Management, LLC's internal control. The auditor's responsibilities include obtaining an understanding of internal control relevant to the audit to design appropriate audit procedures, but not for the purpose of expressing an opinion on the effectiveness of DryJect's internal control.
This means that while the auditor assesses Dryject's internal controls to plan the audit, they do not provide a separate, explicit opinion on whether those controls are effective. The auditor's focus is on the financial statements themselves and whether they are free from material misstatement.
For a prospective Dryject franchisee, this implies that the financial statements have been audited for accuracy and compliance with accounting standards, but there is no independent assessment of the strength or weakness of Dryject's internal controls. A franchisee may want to ask Dryject about their internal control policies and procedures and what measures are in place to safeguard assets and prevent fraud.