What is the auditor required to communicate to those charged with governance regarding the audit of Cinnaholic?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 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 61)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, the auditor is required to communicate with those charged with governance on several key aspects of the audit. These communications include the planned scope and timing of the audit, ensuring that those overseeing Cinnaholic's financial reporting are aware of the audit's breadth and schedule.
Furthermore, the auditor must report any significant audit findings to the governance. This ensures transparency and allows for timely corrective action regarding any identified issues. The auditor is also obligated to communicate certain internal control-related matters that were identified during the audit process.
This communication is a standard practice in financial auditing, ensuring that those responsible for the oversight of Cinnaholic are fully informed about the audit process, its findings, and any weaknesses in internal controls that could affect financial reporting.