What is the auditor's responsibility regarding significant audit findings related to Exit Realty Corp. International?

According to Exit'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 the appropriate parties are informed of important aspects of the audit and any issues that may arise.

Specifically, the auditor's responsibilities include exercising professional judgment and maintaining professional skepticism throughout the audit, identifying and assessing the risks of material misstatement of the financial statements, and obtaining an understanding of internal control relevant to the audit. However, the auditor does not express an opinion on the effectiveness of Exit's internal control. The auditor also evaluates the appropriateness of accounting policies and the reasonableness of significant accounting estimates made by management, as well as the overall presentation of the financial statements.

Furthermore, the auditor must conclude whether there are conditions or events that raise substantial doubt about Exit's ability to continue as a going concern for a reasonable period. This assessment is critical for prospective franchisees as it provides insight into the financial stability of the franchisor. The communication of significant audit findings helps ensure transparency and accountability in the financial reporting process, which is essential for maintaining trust and confidence in the franchise system.