What are the auditors required to communicate to those charged with governance regarding the audit of Buona's financial statements?
Buona 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 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the auditors are required to communicate with those charged with governance on several key aspects of the audit. These include the planned scope and timing of the audit, ensuring that those overseeing the financial governance of Buona are aware of the audit's extent and schedule.
Additionally, the auditors must communicate any significant findings that arise during the audit process. This ensures transparency and allows for timely intervention or adjustments if any critical issues are identified.
Finally, the auditors are obligated to report on certain internal control-related matters that they identify during the audit. This is crucial for maintaining the integrity of financial reporting and ensuring that Buona has robust internal controls in place to prevent errors or fraud. These communications collectively provide a comprehensive overview of the audit process and its outcomes to those responsible for the company's governance.