With whom are auditors required to communicate regarding the planned scope and timing of the audit for Chatime?

According to Chatime's 2025 Franchise Disclosure Document, the auditors are required to communicate with those charged with governance regarding the planned scope and timing of the audit. This communication also extends to significant audit findings and certain internal control related matters identified during the audit.

For a prospective Chatime franchisee, this indicates that the audit process involves oversight from a governance body, ensuring transparency and accountability in the financial reporting. The franchisee may not be directly involved in these communications, but the presence of such a process suggests that financial matters are reviewed by an independent body.

This requirement ensures that key stakeholders are informed about the audit's scope, timing, and findings, promoting confidence in the financial statements. It also highlights the auditor's responsibility to report any significant issues related to internal controls, which can help Chatime address potential weaknesses and improve its financial management practices.