Do the auditors express an opinion on the effectiveness of Pearce Bespoke's internal control?

According to Pearce Bespoke's 2025 Franchise Disclosure Document, the independent auditor does not express an opinion on the effectiveness of the company's internal control. While the auditors obtain an understanding of internal control relevant to the audit to design appropriate procedures, the audit's purpose is not to evaluate or provide an opinion on the effectiveness of Pearce Bespoke's internal control systems.

This means that the audit focuses on the financial statements themselves, ensuring they are free from material misstatement, rather than assessing the strength and reliability of the company's internal controls over financial reporting. The auditors' responsibilities include identifying and assessing risks of material misstatement, examining evidence related to financial statement amounts and disclosures, and evaluating the appropriateness of accounting policies and management estimates.

Prospective franchisees should understand that the financial statements have been audited for accuracy and fair presentation, but the audit does not provide assurance about the effectiveness of Pearce Bespoke's internal controls. If a franchisee wants to gain more comfort about the internal controls, they may want to ask Pearce Bespoke about their internal control policies and procedures.