What is the auditor's responsibility regarding internal control when auditing Gokhale Method?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
In performing an audit in accordance with generally accepted auditing standards, we:
- 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 Gokhale Method Institute, Inc.'s internal control. Accordingly, no such opinion is expressed.
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 34)
What This Means (2024 FDD)
According to the 2024 Gokhale Method Franchise Disclosure Document, the auditor's responsibility regarding internal control 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 audit is not for the purpose of expressing an opinion on the effectiveness of Gokhale Method's internal control, and therefore, no such opinion is expressed.
In simpler terms, the auditor needs to know enough about Gokhale Method's internal controls to plan a good audit. They need to understand how the company ensures its financial information is accurate and reliable. This helps them decide what specific tests and checks to perform during the audit.
However, the auditor's job is not to give an official stamp of approval on Gokhale Method's internal controls. They won't say whether the company's controls are excellent, good, or weak. Their focus is solely on whether the financial statements are fairly presented. The auditor will 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.