What is the auditor's responsibility regarding significant audit findings related to Engel & Volkers?

According to Engel & Volkers's 2025 Franchise Disclosure Document, the auditor is required to communicate with those charged with governance regarding the planned scope and timing of the audit, any significant audit findings, and certain internal control related matters identified during the audit. This communication ensures that key stakeholders are informed about the audit process, its results, and any issues related to internal controls that could affect the financial reporting of Engel & Volkers Americas, Inc. and Subsidiary.

For a prospective Engel & Volkers franchisee, this means that the financial statements presented in the FDD have been reviewed by an independent auditor who is obligated to report any significant issues to the company's governance. This provides a level of assurance that the financial information is reliable and that any material weaknesses in internal controls have been identified and communicated. Franchisees can have more confidence in the financial health and stability of the franchisor.

It is important to note that the auditor's role is not to express an opinion on the effectiveness of Engel & Volkers' internal control, but rather to design audit procedures appropriate to the circumstances. The auditor's communication focuses on matters identified during the audit process, offering insights into the financial oversight and governance of the company. This transparency helps potential franchisees make informed decisions about investing in an Engel & Volkers franchise.