What does the auditor of Checkers evaluate regarding the overall presentation of the financial statements?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
In performing an audit in accordance with US GAAS, we:
- Exercise professional judgment and maintain professional skepticism throughout the audit.
- Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. Accordingly, no such opinion is expressed.
- Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the consolidated financial statements.
- Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for a reasonable period of time.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, the auditor evaluates the overall presentation of the consolidated financial statements. This evaluation is part of an audit performed in accordance with auditing standards generally accepted in the United States of America (US GAAS).
Specifically, the auditor assesses whether the way the financial information is displayed and organized provides a fair and clear view of Checkers' financial position and performance. This includes examining the appropriateness of the accounting policies Checkers uses and the reasonableness of significant accounting estimates made by the management team.
For a prospective Checkers franchisee, this means that an independent accounting firm has reviewed the company's financial statements to ensure they are presented in a way that complies with standard accounting practices. This provides a level of assurance that the financial information is reliable and can be used to make informed business decisions. The audit aims to detect any material misstatements, whether due to fraud or error, and to ensure that the financial statements accurately reflect the company's financial health.