During an audit, is there an opinion expressed on the effectiveness of Moes Southwest Grill's internal control?
Moes_Southwest_Grill 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 the Company's internal control. Accordingly, no such opinion is expressed.
Source: Item 23 — Receipts (FDD pages 92–334)
What This Means (2025 FDD)
According to the 2025 FDD, the auditor's report for Moes Southwest Grill's parent company, GoTo Foods Systems LLC, does not include an opinion on the effectiveness of the company's internal control. While the auditors obtain an understanding of internal control relevant to the audit, this is solely to design appropriate audit procedures.
The report explicitly states that the purpose of understanding internal control is not to express an opinion on its effectiveness. Therefore, prospective Moes Southwest Grill franchisees should be aware that the audit provides no assurance regarding the strength or weaknesses of the company's internal controls.
This is a fairly standard practice in financial audits. The audit focuses on the fair presentation of the financial statements, and while internal controls are considered, their effectiveness is not directly assessed or reported upon. Franchisees may want to inquire separately with Moes Southwest Grill about their internal control environment and any related assessments or certifications they may have.