What does the auditor of Checkers exercise throughout the audit?

According to Checkers' 2025 Franchise Disclosure Document, the auditor exercises professional judgment and maintains professional skepticism throughout the audit. This means the auditor must apply their expertise and experience to make informed decisions during the audit process. They must also maintain a questioning mind and critically assess the information provided by Checkers, remaining alert to potential misstatements or fraud.

This approach is in line with generally accepted auditing standards (GAAS), which require auditors to conduct audits with objectivity and integrity. By exercising professional judgment, the auditor determines the scope and nature of the audit procedures, evaluates the audit evidence, and forms an opinion on the fairness of Checkers' financial statements. Maintaining professional skepticism ensures that the auditor does not blindly accept management's assertions but instead seeks corroborating evidence and considers alternative explanations.

For a prospective Checkers franchisee, this indicates that the financial statements presented in the FDD have been rigorously examined by an independent auditor. The franchisee can have more confidence that the financial information is reliable and fairly presented. However, it is important to remember that an audit provides reasonable assurance, not absolute certainty, and that the auditor's opinion is based on the information available at the time of the audit.