What is the auditor required to do regarding certain internal control-related matters identified during the audit of Checkers?

According to Checkers' 2025 Franchise Disclosure Document, the auditor is required to communicate with those charged with governance regarding the planned scope and timing of the audit, any significant audit findings, and certain internal control-related matters identified during the audit. This communication is a standard practice in audits to ensure that those responsible for overseeing the financial reporting process are informed of key aspects of the audit.

For a prospective Checkers franchisee, this means that the audit process is designed to identify and communicate any significant issues related to internal controls. While the audit does not express an opinion on the effectiveness of Checkers' internal controls, the communication of identified matters ensures that the appropriate parties are aware of potential weaknesses or areas for improvement. This can provide a level of assurance that financial reporting and related controls are being reviewed and assessed.

It is important to note that the auditor's responsibility is to communicate these matters, not necessarily to resolve them. The responsibility for addressing any identified internal control weaknesses ultimately lies with the management and those charged with governance of Checkers. Franchisees can take comfort in knowing that these communications occur, but should also understand the limitations of the audit process and the importance of strong internal controls at both the franchisor and franchisee level.