What must the auditors communicate to those charged with governance regarding the audit of Epcon Communities?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
To the Members Epcon Communities Franchising, LLC and Subsidiary Dublin, Ohio
Independent Auditor's Report
Opinion
We have audited the accompanying consolidated financial statements of Epcon Communities Franchising, LLC and Subsidiary (the Company), which comprise the consolidated balance sheets as of December 31, 2023 and 2022, and the related consolidated statements of income and changes in member's equity and cash flows for the years then ended, and the related notes to the consolidated financial statements.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2023 and 2022, and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are required to be independent of the Company and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Responsibilities of Management for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.
Source: Item 23 — RECEIPTS (FDD pages 86–280)
What This Means (2025 FDD)
I am unable to provide information about what the auditors must communicate to those charged with governance regarding the audit of Epcon Communities. The provided excerpts from the 2025 Franchise Disclosure Document do include an Independent Auditor's Report, but it outlines the auditor's opinion, the basis for that opinion, and the responsibilities of the management. The excerpts do not contain details about the specific communications required between the auditors and those charged with governance.
For a prospective franchisee, understanding the scope of the audit and the communications between the auditor and governance is crucial for assessing the financial oversight and accountability within the Epcon Communities organization. This information can provide insights into the robustness of financial reporting and internal controls.
To gain a comprehensive understanding, a prospective franchisee should ask Epcon Communities for details regarding the auditor's required communications with those charged with governance. Specifically, inquire about the types of matters that are communicated, the frequency of communication, and the process for addressing any concerns raised during the audit.