What is the auditor required to communicate to those charged with governance at Fat Shack?
Fat_Shack 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 audit.
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, the auditor, Muhammad ~ Zubairy, CPA PC, is required to communicate certain information to those charged with governance. This communication includes the planned scope and timing of the audit, ensuring that those overseeing Fat Shack's financial reporting are aware of the audit's extent and schedule.
Additionally, the auditor must report significant audit findings, which are crucial for governance to understand any material issues identified during the audit process. These findings could relate to accounting practices, internal controls, or other areas impacting the financial statements.
Finally, the auditor is obligated to communicate certain internal control-related matters that were identified during the audit. This is important because internal controls are designed to prevent errors and fraud, and any weaknesses found need to be addressed by Fat Shack's management and those charged with governance.