With whom is the auditor required to communicate regarding the audit of Closet Storage Concepts?

According to Closet Storage Concepts' 2025 Franchise Disclosure Document, the auditor is required to communicate with those charged with governance. This communication includes discussing the planned scope and timing of the audit. It also involves sharing significant audit findings and specific internal control-related issues identified during the audit.

For a potential Closet Storage Concepts franchisee, this indicates that the company's financial audits are subject to oversight by an independent auditor who must report key aspects of the audit to a governing body. This governing body is responsible for the overall direction, strategy, and obligations of the entity.

This communication ensures that those in charge of governance are informed about the audit's progress, findings, and any weaknesses in internal controls. This promotes transparency and accountability in the financial reporting process of Closet Storage Concepts. Franchisees can take comfort in knowing that an independent auditor is keeping those charged with governance informed about the financial health and practices of the company.

It is common practice for auditors to communicate with those charged with governance in franchise systems to ensure proper oversight and transparency in financial reporting.