What is the auditor's responsibility regarding the planned scope of the audit for Bens Soft Pretzels?

According to the 2025 FDD, the auditor, Insight Accounting Group, P.C., is required to communicate with those charged with governance regarding the planned scope and timing of the audit for Ben's Soft Pretzels. They must also communicate significant audit findings and certain internal control related matters identified during the audit. This communication ensures transparency and allows those overseeing Ben's Soft Pretzels to understand the audit process and any issues that arise.

This requirement means that the auditor must inform the relevant parties about the extent and schedule of the audit, providing an overview of what areas will be examined and when the audit activities will take place. This allows for better preparation and coordination, ensuring that the necessary information and personnel are available during the audit.

Furthermore, the auditor is obligated to report any significant findings that could impact the financial statements or internal controls of Ben's Soft Pretzels. This includes any material misstatements, fraud, or weaknesses in internal controls that are discovered during the audit. By communicating these findings, the auditor enables Ben's Soft Pretzels to take corrective action and improve its financial reporting processes.

For a prospective franchisee, this indicates that Ben's Soft Pretzels' financial statements are subject to a thorough and transparent audit process. The communication requirements ensure that any potential issues are identified and addressed, providing a level of assurance regarding the accuracy and reliability of the financial information presented in the FDD.