With whom are the auditors required to communicate regarding the scope and timing of the Kidokinetics audit?

According to Kidokinetics' 2024 Franchise Disclosure Document, the auditors are required to communicate with those charged with governance. This communication includes the planned scope and timing of the audit. Additionally, the auditors must report significant audit findings and certain internal control related matters identified during the audit.

For a prospective Kidokinetics franchisee, this indicates that the company's financial audits are overseen by an independent body that communicates directly with those responsible for the company's governance. This helps ensure transparency and accountability in the financial reporting process. The communication of the audit's scope and timing allows for proper planning and preparation by the governing body.

The auditor's responsibility extends to identifying and reporting any significant issues related to internal controls. This provides an additional layer of oversight, helping to safeguard the financial health and stability of Kidokinetics. Franchisees can take comfort in knowing that the financial statements are subject to rigorous review and that any material issues are communicated to the appropriate parties.