Does the audit express an opinion on the effectiveness of Healthsource Chiropractic, LLC's internal control?
Healthsource_Chiropractic Franchise · 2025 FDDAnswer from 2025 FDD Document
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 HealthSource Chiropractic, LLC's internal control. Accordingly, no such opinion is expressed.
Source: Item 23 — Receipts (FDD pages 77–282)
What This Means (2025 FDD)
According to Healthsource Chiropractic's 2025 Franchise Disclosure Document, the independent auditor's report does not express an opinion on the effectiveness of the company's internal control. The audit's objective is to obtain reasonable assurance that the financial statements are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes their opinion on the financial statements.
The auditor's responsibilities include understanding internal control relevant to the audit to design appropriate procedures, but not to express an opinion on the effectiveness of HealthSource Chiropractic's internal control. The auditor's report states explicitly that 'no such opinion is expressed.'
This means that while the auditor assesses internal controls to plan the audit, they do not provide an independent assessment of how well HealthSource Chiropractic's internal controls are designed or operating. A prospective franchisee should be aware that the audit focuses on the accuracy of the financial statements, not on the strength of the company's internal control systems.