What is the auditor's responsibility regarding certain internal control related matters identified during the audit of iTan?

According to Itan'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. This communication also includes significant audit findings and certain internal control related matters that the auditor identifies during the audit.

This means that the auditor, after performing their audit, must inform the relevant governing body (likely Itan's management or board) about the key aspects of the audit process. This includes when the audit will take place and its breadth. More importantly, the auditor must report any significant issues discovered during the audit, including problems related to Itan's internal controls.

For a prospective Itan franchisee, this indicates that the franchisor's financial audits are subject to scrutiny, and any weaknesses in internal controls are reported to those in charge. While the auditor doesn't express an opinion on the effectiveness of Itan's internal controls, the communication of identified issues provides a level of transparency and accountability. This can be reassuring to a franchisee, as it suggests that financial oversight exists and that potential problems are brought to the attention of Itan's leadership.