During an audit, is there an opinion expressed on the effectiveness of Petro Stopping Center's internal control?

According to the 2025 FDD, the independent auditor's report for BP Corporation North America Inc., the parent company of Petro Stopping Center, explicitly states that the audit does not include an opinion on the effectiveness of the company's internal control. The audit aims to obtain reasonable assurance that the financial statements are free from material misstatement. As part of the audit process, the auditor gains an understanding of internal control relevant to the audit to design appropriate procedures, but not to express an opinion on its effectiveness.

This disclaimer means that while the auditor assesses internal controls to plan the audit, they do not provide an independent assessment or guarantee of how well those controls function. A prospective Petro Stopping Center franchisee should understand that the financial statements have been audited for accuracy and compliance with accounting standards, but there is no separate assurance about the strength of the company's internal controls.

Typically, a detailed audit of internal controls is a separate engagement, often performed under standards like those established by the Public Company Accounting Oversight Board (PCAOB) for public companies. The absence of an opinion on internal control effectiveness does not necessarily indicate weak controls, but rather that this aspect was not specifically evaluated and reported on by the auditor. Franchisees may want to inquire separately with Petro Stopping Center about any internal control audits or assessments that have been conducted beyond the scope of the standard financial statement audit.