What ethical requirements are the auditors of Carvel required to meet in relation to their audits?
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, must adhere to specific ethical requirements during their audit of GoTo Foods LLC, the parent company of Carvel. These requirements are in accordance with auditing standards generally accepted in the United States of America (US GAAS).
Specifically, Grant Thornton LLP is required to be independent of GoTo Foods LLC. Additionally, they must meet other ethical responsibilities as dictated by the relevant ethical requirements pertaining to their audits. This independence and adherence to ethical standards are crucial for ensuring the integrity and objectivity of the audit process.
The auditors' responsibilities include obtaining reasonable assurance that the consolidated financial statements are free from material misstatement, whether due to fraud or error, and issuing an auditor's report that includes their opinion. They must exercise professional judgment and maintain professional skepticism throughout the audit, assess the risks of material misstatement, and evaluate the appropriateness of accounting policies and the reasonableness of significant accounting estimates made by management. These measures help to ensure that the financial statements provide a fair and accurate representation of the company's financial position and performance.
For a prospective Carvel franchisee, this indicates that the financial statements presented in the FDD have been rigorously examined by an independent auditor who is bound by ethical and professional standards. This provides a level of confidence in the accuracy and reliability of the financial information, which is essential for making informed investment decisions.