What is the auditor required to communicate to those charged with governance regarding the audit of Body20?
Body20 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 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, the auditor has specific communication responsibilities to those charged with governance. These communications include the planned scope and timing of the audit. This means Body20 franchisees can expect that the audit's overall plan and schedule will be discussed with the relevant governing parties.
Additionally, the auditor must communicate significant audit findings. This would encompass any important issues or observations that arise during the audit process. Franchisees should be aware that this communication ensures transparency and allows for timely resolution of any identified problems.
Finally, the auditor is required to communicate certain internal control-related matters identified during the audit. This involves sharing information about any weaknesses or deficiencies in Body20's internal controls that could impact financial reporting. This communication is crucial for maintaining the integrity of financial processes and ensuring accurate financial statements.