What is the auditor's responsibility regarding the planned scope of the audit for 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. Additionally, the auditor will communicate significant audit findings and certain internal control-related matters identified during the audit. This communication ensures transparency and provides stakeholders with insights into the audit process and its outcomes.

For a prospective Aw franchisee, this means that the financial statements included in the FDD have been examined by an independent auditor, who has communicated their planned scope and any significant findings to those overseeing the company. This process helps to ensure the reliability and accuracy of the financial information presented. Franchisees can have more confidence in the financial health and reporting of Aw due to this oversight.

It is important to note that while the auditor provides an opinion on the financial statements, they are not responsible for the preparation and fair presentation of those statements. That responsibility lies with Aw's management. The auditor's role is to provide reasonable assurance that the financial statements are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes their opinion.

Prospective franchisees might want to inquire about who exactly "those charged with governance" are, and whether summaries of the auditor's communications with them are available for review. Understanding the scope and findings of the audit can provide valuable insights into the financial management and internal controls of Aw.