What is the auditor required to communicate to those charged with governance regarding the audit of Degree Wellness?
Degree_Wellness 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 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, the auditor has specific communication responsibilities to those charged with governance. These communications include the planned scope and timing of the audit, ensuring that those overseeing the financial aspects are aware of the audit's breadth and schedule.
Furthermore, the auditor must report significant audit findings, which would encompass any material misstatements or irregularities discovered during the audit process. This ensures transparency and allows the governance body to address any issues promptly.
Lastly, the auditor is obligated to communicate certain internal control-related matters identified during the audit. This provides valuable insights into the effectiveness of Degree Wellness's internal controls and helps the governance body to strengthen these controls where necessary. These communications are essential for maintaining the integrity and reliability of Degree Wellness's financial reporting.