What is the auditor required to communicate to those charged with governance regarding the audit of Fly Fitness?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
We are required to communicate those charged with governance regarding, among other matters, the planned scope and time of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 44)
What This Means (2024 FDD)
According to Fly Fitness's 2024 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 Fly Fitness's financial reporting are aware of the audit's extent and schedule.
Additionally, the auditor must report significant findings from the audit. This would involve highlighting any material misstatements, instances of fraud, or other critical issues identified during the audit process.
Finally, the auditor is obligated to communicate certain internal control-related matters that were identified during the audit. This ensures that those charged with governance are informed of any weaknesses or deficiencies in Fly Fitness's internal controls that could impact the reliability of financial reporting.