What is the auditor's responsibility regarding internal control related matters identified during the audit of iTan?
Itan 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 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to iTan's 2025 Franchise Disclosure Document, the auditor has a responsibility to communicate certain internal control related matters identified during the audit to those charged with governance. This communication is one of several responsibilities the auditor undertakes during the audit process.
Specifically, the auditor's responsibilities include obtaining an understanding of internal control relevant to the audit. This understanding is used to design audit procedures that are appropriate for the circumstances, but it is explicitly not for the purpose of expressing an opinion on the effectiveness of iTan's internal control. Therefore, the auditor does not provide an opinion on how well iTan's internal controls are working.
In addition to communicating internal control matters, the auditor is also responsible for determining if there are conditions or events that raise substantial doubt about iTan's ability to continue as a going concern. They must exercise professional judgment, maintain professional skepticism, identify and assess risks of material misstatement, and evaluate the appropriateness of accounting policies and reasonableness of significant accounting estimates made by management.