When auditing Checkers' financial statements, is the purpose to express an opinion on the effectiveness of the company's internal control?

According to Checkers' 2025 Franchise Disclosure Document, the purpose of the audit of the company's financial statements is not to express an opinion on the effectiveness of the company's internal control. While the auditors do obtain an understanding of internal control relevant to the audit, this is done to design appropriate audit procedures, not to evaluate or provide an opinion on the overall effectiveness of Checkers' internal controls. The audit is conducted in accordance with auditing standards generally accepted in the United States of America.

The auditors' responsibilities include identifying and assessing the risks of material misstatement of the financial statements, whether due to fraud or error. They also examine evidence regarding the amounts and disclosures in the financial statements on a test basis. The auditors evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as the overall presentation of the financial statements.

For a prospective Checkers franchisee, this means that the audit provides assurance on the fairness of the financial statements themselves, but it does not offer a specific guarantee about the strength of Checkers' internal controls. Franchisees may want to consider this when evaluating the financial stability and reporting practices of the company. While the audit will identify any significant internal control-related matters discovered during the audit, it does not provide a comprehensive assessment of internal control effectiveness.