What are the auditors required to communicate to those charged with governance at Stretch Zone regarding the audit?
Stretch_Zone 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 3 — Franchisee/Debtor's Warranties. (FDD pages 263–364)
What This Means (2025 FDD)
According to the 2025 FDD, the auditors for Stretch Zone are required to communicate certain information to those in charge of governance. This communication includes the planned scope and timing of the audit, which allows for transparency and understanding of the audit process.
Additionally, the auditors must report any significant findings that arise during the audit. This ensures that key stakeholders are aware of any important issues or discrepancies identified in the financial statements.
Finally, the auditors are obligated to communicate certain internal control-related matters that they identify during the audit. This helps Stretch Zone's management and governance to improve their internal controls and address any weaknesses that could affect the accuracy and reliability of financial reporting.