With whom is the auditor required to communicate regarding the audit of Apricot Lane?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to the 2025 Apricot Lane FDD, the auditor is required to communicate with those charged with governance. This communication includes the planned scope and timing of the audit. It also includes significant audit findings. Certain internal control-related matters identified during the audit must also be communicated.
For a prospective Apricot Lane franchisee, this indicates that the audit process involves transparency and communication with the governing body of the company. This ensures that key stakeholders are informed about the audit's progress, findings, and any issues related to internal controls.
This requirement aligns with standard auditing practices, ensuring that those responsible for the oversight of the company are kept informed of the audit's key aspects and findings. This promotes accountability and allows for timely corrective actions if any deficiencies are identified.