What is the auditor's responsibility regarding the communication with those charged with governance regarding the audit of Craters & Freighters?
Craters_Freighters 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 49)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, the auditor is required to communicate with those charged with governance. This communication includes the planned scope and timing of the audit.
In addition to the audit's scope and timing, the auditor must also communicate significant audit findings. These findings could include issues identified during the audit process that are important for the governing body to be aware of.
Finally, the auditor is also responsible for communicating certain internal control-related matters that were identified during the audit. This ensures that those in charge of governance are informed about any weaknesses or issues in the company's internal controls that could affect financial reporting.