What does the auditor do to obtain an understanding of internal control relevant to the audit of iTan?

According to Itan's 2025 Franchise Disclosure Document, the auditor's responsibility includes obtaining 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 Itan Franchising, Inc.'s internal control, and therefore, no such opinion is expressed.

In simpler terms, the auditor reviews Itan's internal controls to plan the audit effectively. This helps the auditor determine the necessary steps to take during the audit. However, the auditor does not provide a formal assessment or opinion on how well Itan's internal controls are working.

This means that while the auditor considers internal controls, prospective franchisees should not rely on the audit as a guarantee of strong internal controls within the Itan franchise system. If a franchisee wants to know more about the effectiveness of Itan's internal controls, they should ask Itan directly.