What is the auditor's responsibility to communicate with those charged with governance regarding the audit of Crisp & Green?

According to Crisp & Green's 2024 Franchise Disclosure Document, the auditor, CliftonLarsonAllen LLP, is required to communicate with those charged with governance regarding several aspects of the audit. This communication includes the planned scope and timing of the audit, ensuring that those overseeing Crisp & Green's financial reporting are aware of the audit's timeline and breadth.

Additionally, the auditor must communicate significant audit findings. This would involve informing the governance structure about any material misstatements or irregularities discovered during the audit process. Furthermore, the auditor is obligated to report on certain internal control-related matters identified during the audit. This ensures that any weaknesses or deficiencies in Crisp & Green's internal controls are brought to the attention of those responsible for governance, allowing for timely corrective action.

This communication is a standard practice in auditing, ensuring transparency and accountability in the financial reporting process. For a prospective Crisp & Green franchisee, this indicates that the franchisor's financial statements are subject to rigorous review and that any significant issues are communicated to the appropriate governing bodies. This can provide a level of assurance regarding the financial health and stability of the franchise system.