What is the auditor's responsibility concerning Hydrodog's ability to continue as a going concern?

According to Hydrodog's 2025 Franchise Disclosure Document, the auditor has a responsibility to evaluate Hydrodog's ability to continue as a going concern. Specifically, the auditor must conclude whether there are conditions or events that, when considered in the aggregate, raise substantial doubt about Hydrodog's ability to continue operating for a reasonable period of time.

To fulfill this responsibility, the auditor must exercise professional judgment and maintain professional skepticism throughout the audit. This includes identifying and assessing the risks of material misstatement of the financial statements, whether due to fraud or error, and designing and performing audit procedures responsive to those risks. The auditor must also evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.

If the auditor identifies conditions or events that raise substantial doubt about Hydrodog's ability to continue as a going concern, they are required to communicate this to those charged with governance. This communication is part of a broader set of required communications that include the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters identified during the audit. This process ensures transparency and informs stakeholders about potential risks to the business's long-term viability.