With whom is the auditor required to communicate regarding the audit of C12 Group?
C12_Group 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 46)
What This Means (2025 FDD)
According to the 2025 FDD, the auditor for C12 Group is required to communicate with those charged with governance. This communication includes several key aspects of the audit.
The auditor must discuss the planned scope and timing of the audit with those charged with governance. This ensures that the audit process is transparent and that the governing body is aware of the audit's objectives and schedule.
Additionally, the auditor is required to communicate any significant audit findings. This includes any material misstatements or irregularities discovered during the audit process. Furthermore, the auditor must communicate certain internal control-related matters that were identified during the audit. This helps the governing body understand and address any weaknesses in the company's internal controls.
For a prospective C12 Group franchisee, this indicates that the financial audits are overseen with communication to a governing body, ensuring transparency and accountability in the financial reporting process.