What is the auditor required to communicate to those charged with governance regarding the audit of Cream?
Cream 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 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, the auditor, Plante & Moran, PLLC, is required to communicate certain information to those charged with governance. This communication includes the planned scope and timing of the audit, ensuring that those overseeing Cream's financial reporting are aware of the audit's extent and schedule.
Furthermore, the auditor must report significant audit findings, which would encompass any material misstatements or irregularities detected during the audit process. This ensures transparency and allows the governance body to address any issues identified.
Lastly, the auditor is obligated to communicate certain internal control-related matters that were identified during the audit. This provides valuable insights into the effectiveness of Cream's internal controls and helps the governance body to improve these controls to prevent future misstatements or fraud.