What is the auditor's responsibility regarding communication with those charged with governance at Chocolate Bash?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 38)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, the auditor, Omar Alnuaimi, CPA, is required to communicate with those charged with governance. This communication includes discussing the planned scope and timing of the audit to ensure transparency and coordination.
Furthermore, the auditor must report significant audit findings, which could include any material misstatements or irregularities discovered during the audit process. These findings are crucial for those in governance to understand the financial health and compliance of Chocolate Bash.
Finally, the auditor is obligated to communicate certain internal control-related matters identified during the audit. This helps Chocolate Bash's management and governance to improve internal processes and controls, reducing the risk of future financial misstatements or fraud.