With whom is the auditor required to communicate regarding the audit of Punch King Fitness?

According to Punch King Fitness's 2024 Franchise Disclosure Document, the Independent Auditor's Report is addressed to the Board of Directors and Shareholders of Punch King Fitness, Inc. This indicates that the auditor's primary communication regarding the audit of the company's financial statements is directed towards these two groups.

The auditor's report includes their opinion on the financial statements, which comprise the balance sheet as of December 31, 2023, and the related statements of income and retained earnings and cash flows for the year then ended, and the related notes to the financial statements. The auditor states that the financial statements present fairly the financial position of Punch King Fitness, Inc. as of December 31, 2023, and the results of its operations and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.

The report also outlines the responsibilities of both the management and the auditor. Management is responsible for the preparation and fair presentation of the financial statements and for maintaining internal control relevant to the preparation of financial statements. The auditor's responsibilities include obtaining reasonable assurance about whether the financial statements are free from material misstatement and issuing an auditor's report that includes their opinion. This communication ensures transparency and accountability in the financial reporting process of Punch King Fitness.