What matters are auditors required to communicate regarding the audit of Pearce Bespoke?
Pearce_Bespoke 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 21 — FINANCIAL STATEMENTS (FDD page 39)
What This Means (2025 FDD)
According to the 2025 Pearce Bespoke Franchise Disclosure Document, the auditors are required to communicate certain matters to those charged with governance. These matters include the planned scope and timing of the audit. This means Pearce Bespoke franchisees can expect that the auditors will inform relevant parties within the company about when and how the audit will be conducted.
Additionally, the auditors must communicate significant audit findings. This would include any critical issues or discrepancies discovered during the audit process that could impact the financial statements. This ensures transparency and allows for timely corrective action.
Finally, the auditors are required to communicate certain internal control-related matters identified during the audit. This involves reporting any weaknesses or deficiencies in Pearce Bespoke's internal controls that could affect financial reporting. This communication helps Pearce Bespoke improve its internal control systems and reduce the risk of errors or fraud.