What are some examples of 'significant audit findings' that the auditor communicates regarding C12 Group?

According to the 2025 FDD, the auditor for C12 Group is required to communicate with those charged with governance regarding the planned scope and timing of the audit, significant audit findings, and certain internal control related matters identified during the audit.

However, the document does not provide specific examples of what might constitute "significant audit findings" or "internal control related matters." The audit aims to provide reasonable assurance that the financial statements are free from material misstatement, whether due to fraud or error. The auditor's responsibilities include assessing the risks of material misstatement and evaluating the appropriateness of accounting policies and the reasonableness of significant accounting estimates made by management.

For a prospective C12 Group franchisee, this means that while the FDD confirms that audits are conducted and their findings are communicated, it does not offer insight into the types of issues that have been identified in past audits. To gain a better understanding of the financial health and internal controls of C12 Group, a potential franchisee should consider asking the franchisor for more detailed information about any past significant audit findings or internal control weaknesses that have been reported.