What is management's responsibility regarding the 'other information' included in the supplemental schedules for Carls?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
Management is responsible for the other information included in the supplemental schedules. The other information comprises the combining consolidating balance sheets and combining consolidating statements of operations included in the supplemental schedules, but does not include the combined consolidated financial statements and our auditors' report thereon. Our opinion on the combined consolidated financial statements does not cover the other information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the combined consolidated financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the combined consolidated financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 79–80)
What This Means (2024 FDD)
According to Carls's 2024 Franchise Disclosure Document, management is responsible for the 'other information' included in the supplemental schedules. This 'other information' specifically includes the combining consolidating balance sheets and combining consolidating statements of operations that are part of these supplemental schedules.
It is important to note that management's responsibility does not extend to the combined consolidated financial statements or the auditors' report related to those statements. The auditors provide an opinion on the combined consolidated financial statements, but they do not express any opinion or assurance on the 'other information' provided in the supplemental schedules.
During the audit of the combined consolidated financial statements, the auditors will review the 'other information' to check for any material inconsistencies or misstatements. If they find any uncorrected material misstatements, they are required to describe them in their report. This process ensures that while the 'other information' is not directly audited, it is still subject to a review for accuracy and consistency with the audited financial statements.