Does the auditor express an opinion on the effectiveness of Face Foundrie's internal control?

According to Face Foundrie's 2025 Franchise Disclosure Document, the auditor does not express an opinion on the effectiveness of the company's internal control. The auditor's responsibilities include obtaining an understanding of internal control relevant to the audit for designing appropriate audit procedures, but not for the purpose of expressing an opinion on the effectiveness of Face Foundrie's internal control.

This means that while the auditor assesses Face Foundrie's internal controls to plan the audit, they do not provide a separate, explicit opinion on whether those controls are effective. Franchisees should understand that the financial statements have been audited for accuracy and fair presentation, but the audit does not guarantee the strength or reliability of the company's internal controls.

A prospective Face Foundrie franchisee should consider this when evaluating the financial stability and risk associated with the franchise. While an audit provides assurance on the financial figures, it does not offer the same level of assurance regarding the internal processes and controls that ensure ongoing financial health. It would be prudent for a potential franchisee to ask Face Foundrie about their internal control practices and risk management procedures to gain a more complete understanding of the company's operational and financial management.