What is the auditor required to communicate to those charged with governance regarding the audit of Best Brains?
Best_Brains 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 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, the auditor is required to communicate certain information to those charged with governance. This communication includes the planned scope and timing of the audit, ensuring that those overseeing the organization are aware of the audit's extent and schedule.
Additionally, the auditor must report significant audit findings, which would encompass any material misstatements or irregularities discovered during the audit process. This ensures transparency and allows the governing body to address any issues promptly.
Finally, the auditor is obligated to communicate certain internal control-related matters identified during the audit. This involves reporting any weaknesses or deficiencies in the company's internal controls that could impact financial reporting. By providing this information, the auditor enables those charged with governance to improve the organization's internal control environment and mitigate potential risks.