What is the auditor's responsibility regarding the planned scope of the audit for Bombs Away?

According to Bombs Away's 2024 Franchise Disclosure Document, the auditor is required to communicate with those charged with governance regarding the planned scope and timing of the audit. This communication also includes significant audit findings and certain internal control related matters identified during the audit.

In conducting the audit, the auditor must identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error. They design and perform audit procedures responsive to those risks, including examining evidence regarding the amounts and disclosures in the financial statements on a test basis. The auditor also needs to obtain an understanding of internal control relevant to the audit to design appropriate audit procedures, but not for the purpose of expressing an opinion on the effectiveness of Bombs Away's internal control.

Furthermore, the auditor evaluates the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management. They also evaluate the overall presentation of the financial statements. The auditor then concludes whether there are conditions or events that raise substantial doubt about Bombs Away's ability to continue as a going concern for a reasonable period of time.