With whom are the auditors required to communicate regarding the audit of Big Apple Bagels?

According to Big Apple Bagels' 2025 Franchise Disclosure Document, the auditors are required to communicate with those charged with governance. This communication includes the planned scope and timing of the audit. Additionally, the auditors must report any significant audit findings to this group. The communication extends to certain internal control-related matters identified during the audit process.

For a prospective Big Apple Bagels franchisee, this indicates that the franchisor maintains oversight of its financial audits and internal controls. The communication ensures that key stakeholders are informed about the audit's progress, findings, and any issues related to internal controls. This transparency helps maintain the integrity of the financial reporting and operational efficiency of the Big Apple Bagels franchise system.

This requirement is a standard practice in financial auditing, ensuring that those responsible for the overall governance of the organization are kept informed of the audit's findings and any significant issues identified. Franchisees can take comfort in knowing that the franchisor's financial practices are subject to scrutiny and that any potential issues are communicated to the appropriate parties.