What is the auditor's responsibility regarding the planned scope and timing of the audit of 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 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.
In simpler terms, the auditor must inform Chocolate Bash's governing body about when and how the audit will be conducted. This includes the breadth of the audit (what areas it will cover) and the schedule for the audit process.
Additionally, the auditor is responsible for reporting any significant issues discovered during the audit, such as potential fraud, errors, or weaknesses in internal controls. This ensures that Chocolate Bash's management and governing body are fully informed about the financial health and operational integrity of the company.