What specific matters are the auditors required to communicate regarding the audit of Boulder Designs?

According to Boulder Designs' 2025 Franchise Disclosure Document, the auditors performing the audit in accordance with Generally Accepted Auditing Standards (GAAS) have specific communication responsibilities. These include communicating with those charged with governance regarding the planned scope and timing of the audit. This means the auditors must inform the relevant parties about the extent and schedule of the audit activities.

Additionally, the auditors are required to communicate significant audit findings. This encompasses any important issues or observations that arise during the audit process that could impact the financial statements. Furthermore, the auditors must communicate certain internal control-related matters that they identified during the audit. This involves reporting any weaknesses or deficiencies in the company's internal controls that were discovered during the audit.

For a prospective Boulder Designs franchisee, this indicates that the franchisor's financial statements are subject to a rigorous audit process that includes external oversight and communication of key findings. This can provide a level of assurance regarding the accuracy and reliability of the financial information presented. Understanding the scope and findings of these audits can be a valuable part of a franchisee's due diligence process.