What is the auditor's responsibility regarding the planned scope of the audit for C12 Group?

According to C12 Group's 2025 Franchise Disclosure Document, the auditor is required to communicate with those charged with governance regarding the planned scope and timing of the audit. The auditor must also communicate significant audit findings and certain internal control related matters identified during the audit. This communication ensures transparency and provides an opportunity for those overseeing C12 Group to understand the audit process and any issues that may arise.

This requirement means that prospective C12 Group franchisees can have increased confidence in the financial statements presented. The communication between the auditor and those in governance roles helps to ensure that the audit is thorough and that any potential problems are identified and addressed. This process adds a layer of oversight and accountability to the financial reporting of C12 Group.

For a potential franchisee, this indicates that the financial information provided by C12 Group has been rigorously examined and that any significant issues have been communicated to the appropriate parties. While it doesn't guarantee the absence of all risks, it does provide a higher level of assurance compared to situations where such communication is lacking. Franchisees may want to inquire about the specific findings and communications from recent audits to further assess the financial health and stability of C12 Group.