What is the auditor's responsibility regarding the communication with those charged with governance regarding the audit of Exit Realty Corp. International?

According to Exit's 2025 Franchise Disclosure Document, 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 overseeing Exit's financial reporting are aware of the audit's extent and schedule. Additionally, the auditor must report significant audit findings, which would encompass any material issues or discrepancies discovered during the audit process.

Furthermore, the auditor is obligated to communicate certain internal control-related matters identified during the audit. This involves informing the governance structure about any weaknesses or deficiencies in Exit's internal controls that could impact financial reporting. By communicating these issues, the auditor provides valuable insights to those charged with governance, enabling them to take corrective actions and improve the overall financial management of Exit.

For a prospective Exit franchisee, this indicates that the financial statements have been subjected to external scrutiny, and that the auditor has a responsibility to keep the company's governance informed of key aspects of the audit. This communication helps ensure transparency and accountability in Exit's financial reporting processes.