What is the auditor required to communicate to those charged with governance regarding the audit of Embassy Suites?
Embassy_Suites 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 audits.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 97)
What This Means (2025 FDD)
According to the 2025 FDD, the auditor is required to communicate with those charged with governance regarding several aspects of the audit. These communications include the planned scope and timing of the audit, ensuring that those involved in governing the company are aware of the audit's extent and schedule.
Furthermore, the auditor must report significant audit findings, which would encompass any critical issues or discrepancies discovered during the audit process. This ensures transparency and allows for timely corrective action.
Lastly, the auditor is obligated to communicate certain internal control-related matters identified during the audits. This involves reporting any weaknesses or deficiencies in the company's internal controls that could impact financial reporting. These communications are essential for maintaining the integrity and reliability of Embassy Suites' financial statements and ensuring good governance practices.