What ethical requirements are the auditors of Carvel required to meet?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
We conducted our audits of the consolidated financial statements in accordance with auditing standards generally accepted in the United States of America (US GAAS). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the 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 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, the auditors, Grant Thornton LLP, are required to adhere to specific ethical standards. As stated in the 'Basis for opinion' section of the audit report, Grant Thornton LLP conducted their audits in accordance with auditing standards generally accepted in the United States of America (US GAAS). As part of these standards, the auditors are mandated to be independent of GoTo Foods LLC and its subsidiaries, the parent company of Carvel.
Furthermore, the auditors must meet other ethical responsibilities in accordance with the relevant ethical requirements pertaining to their audits. This encompasses maintaining objectivity, integrity, and professional skepticism throughout the audit process. The auditors' adherence to these ethical standards is crucial to ensure the credibility and reliability of the financial statements.
For a prospective Carvel franchisee, this information provides assurance that the financial statements of GoTo Foods LLC, which include Carvel's financial performance, are audited by an independent firm that adheres to strict ethical guidelines. This independence and adherence to ethical standards help ensure that the financial information presented is fair, accurate, and reliable, which is essential for making informed investment decisions.