What ethical requirements are the auditors of Carls required to meet?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Combined Consolidated Financial Statements section of our report. We are required to be independent of the Company and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 79–80)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, the auditors, in this case KPMG LLP, are required to be independent of the company (Carls Jr. SPV Guarantor LLC and Hardee's SPV Guarantor LLC) and to meet other ethical responsibilities in accordance with the relevant ethical requirements relating to their audits. This requirement ensures that the auditors maintain objectivity and impartiality when examining Carls's financial statements.
This independence is crucial for providing a fair and unbiased opinion on the financial health of Carls. The auditors must not have any financial, personal, or professional relationships that could compromise their judgment. By adhering to these ethical standards, the auditors enhance the credibility of the financial statements, which is important for prospective franchisees in making informed investment decisions.
The audit is conducted in accordance with auditing standards generally accepted in the United States of America (GAAS). These standards dictate the procedures and practices that auditors must follow to ensure the reliability and accuracy of financial statements. Compliance with GAAS and the relevant ethical requirements provides a level of assurance to potential Carls franchisees that the financial information presented has been thoroughly and independently reviewed.