What is the auditor's responsibility regarding the communication of certain internal control-related matters identified during the audit to those charged with governance for Checkersrallys?

According to Checkersrallys'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. This communication also extends to significant audit findings and certain internal control-related matters that the auditor identifies during the audit.

This requirement ensures that those responsible for overseeing Checkersrallys's financial reporting and internal controls are informed of key aspects of the audit process and its outcomes. This includes not only the overall plan for the audit but also any specific issues or weaknesses in internal controls that the auditor discovers. By communicating these matters, the auditor provides valuable information that can help Checkersrallys's governance improve financial reporting practices and address any potential risks.

For a prospective franchisee, this indicates that Checkersrallys undergoes regular financial audits, and the results, including any identified issues with internal controls, are communicated to the appropriate governing bodies. While the audit is not for the purpose of expressing an opinion on the effectiveness of the company's internal control, the communication of identified matters provides an opportunity for Checkersrallys to strengthen its financial processes. This transparency and oversight can be seen as a positive sign, suggesting that Checkersrallys is committed to maintaining sound financial practices and addressing any identified weaknesses in its internal controls.