What does the auditor of Checkers obtain an understanding of to design audit procedures?

According to Checkers' 2025 Franchise Disclosure Document, when performing an audit, the auditor obtains an understanding of internal control relevant to the audit. This understanding is used to design audit procedures that are appropriate for the specific circumstances of the audit. However, the purpose of obtaining this understanding is not to express an opinion on the effectiveness of Checkers' internal control, and the auditor's report will not include such an opinion.

In simpler terms, the auditor reviews Checkers' internal controls to figure out the best way to conduct the audit. This helps them determine if the financial statements are likely to be accurate and reliable. Internal controls are the policies and procedures Checkers has in place to prevent errors or fraud.

It's important to note that while the auditor assesses these controls, they don't provide a separate, formal opinion on how well those controls are working. The focus is on using this knowledge to plan an effective audit of the financial statements themselves. This is a standard practice in auditing, ensuring that the audit is tailored to the specific risks and controls of the company being audited.