What is the auditor's responsibility regarding significant audit findings for C12 Group?

According to the 2025 C12 Group 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 extends to significant audit findings and certain internal control-related matters identified during the audit. This ensures transparency and accountability in the audit process.

For a prospective C12 Group franchisee, this means that the audit of C12 Group's financial statements is subject to scrutiny and oversight. The auditor is not only responsible for forming an opinion on the financial statements but also for communicating any significant issues discovered during the audit to those in charge of governance. This provides an additional layer of assurance that any material misstatements or internal control weaknesses will be brought to the attention of the appropriate parties.

This requirement aligns with standard auditing practices, where auditors are expected to communicate important findings to management and those charged with governance. This communication helps ensure that any necessary corrective actions are taken to address the identified issues, ultimately contributing to the reliability and accuracy of the financial statements. Franchisees can take comfort in knowing that the financial health of C12 Group is regularly assessed and that any significant findings are communicated to the appropriate governing bodies.