What is the auditor's responsibility regarding certain internal control-related matters identified during the audit of Aw?

According to Aw's 2025 Franchise Disclosure Document, the auditor is required to communicate with those charged with governance regarding the planned scope and timing of the audit. This communication also includes significant audit findings. Importantly, the auditor must also communicate about certain internal control-related matters identified during the audit.

This means that if the auditor finds any issues with Aw's internal controls during the audit, they are obligated to inform the relevant parties. Internal controls are the processes and procedures Aw uses to ensure the accuracy and reliability of its financial reporting, as well as to safeguard its assets. These communications are a standard part of an audit and help ensure transparency and accountability.

For a prospective Aw franchisee, this indicates that the franchisor's financial statements are subject to scrutiny, and any weaknesses in internal controls are brought to the attention of those in charge. While the auditor does not express an opinion on the effectiveness of internal control, the communication of identified matters provides an opportunity for Aw to improve its financial processes. This can give franchisees more confidence in the financial stability and reporting of the franchise system.