As most franchisors would be aware, franchisors are required to include certain financial details in their disclosure documents. For most franchisors, this is either financial reports for each of the last 2 completed financial years or an independent audit that supports the solvency statement provided by the franchisor.

To assist franchisors (and, more particularly, auditors assisting franchisors) to prepare the audit, the Auditing and Assurance Standards Board has formerly issued a Guidance Statement (Guidance Statement GS018 Franchising Code of Conduct – Auditor’s report), which provides details about the audit, as well as example wording that may be used by an auditor in preparing the audit report.

In April 2026, the Auditing and Assurance Standards Board reissued this Statement (prior to the April 2026 version, it was last reissued in 2015). A copy of the April 2026 version of the Statement is available here.

Relevantly, the example wording that is included in the statement has been updated.

We recommend that all franchisors and auditors review and consider the updated statement in readiness for the disclosure update season we are moving into.

This article was written by Allison McLeod, Consultant, and reviewed by Matthew Rowe, Partner.