What is the auditor's responsibility regarding internal control when auditing Pump It Up?

According to the 2025 FDD, the auditor's responsibility regarding internal control when auditing Pump It Up is to obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. However, this understanding is not for the purpose of expressing an opinion on the effectiveness of FB Holdings, LLC and Subsidiaries' internal control, and accordingly, no such opinion is expressed.

In simpler terms, the auditor, CliftonLarsonAllen LLP, assesses Pump It Up's internal controls to plan the audit effectively. This involves understanding how the company safeguards its assets and ensures the accuracy of its financial records. However, the audit does not result in a formal opinion on whether Pump It Up's internal controls are effective overall.

This approach is standard in financial auditing. Auditors need to understand internal controls to determine where the financial statements might be susceptible to errors or fraud. By understanding the controls, they can then tailor their audit procedures to focus on the areas of greatest risk. However, providing an opinion on the overall effectiveness of internal controls would require a more extensive and different type of engagement.