For Sonesta Simply Suites, what is the purpose of obtaining an understanding of internal control relevant to the audit?

According to the 2025 FDD, the purpose of obtaining an understanding of internal control relevant to the audit for Sonesta Simply Suites is to design audit procedures that are appropriate in the circumstances. However, this understanding is specifically not for the purpose of expressing an opinion on the effectiveness of the company's internal control, and the auditor will not express such an opinion.

This means that while the auditors will assess Sonesta Simply Suites's internal controls to plan their audit, they are not providing a guarantee that those controls are effective. The audit is focused on the financial statements themselves, not on the systems and processes that produce those statements. This is a standard practice in financial auditing, where the primary goal is to ensure the accuracy and reliability of the financial statements presented.

For a prospective Sonesta Simply Suites franchisee, this information is relevant because it clarifies the scope and limitations of the financial audit. While the audit provides assurance about the financial figures, it does not offer a separate assessment of the internal controls. If a franchisee is concerned about the strength of Sonesta Simply Suites's internal controls, they may need to seek additional information or perform their own due diligence.