What does GAAS stand for in the context of the Checkers audit?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
We conducted our audit 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 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to the 2025 Checkers Franchise Disclosure Document, GAAS stands for auditing standards generally accepted in the United States of America. This is referenced in Item 21, which discusses the financial statements of Checkers Drive-In Restaurants, Inc. The independent auditor's report states that the audits were conducted in accordance with these standards.
Specifically, the auditor's responsibilities include obtaining reasonable assurance that the financial statements are free from material misstatement, whether due to fraud or error, and issuing a report that includes their opinion. However, reasonable assurance is not absolute, so there is no guarantee that all misstatements will be detected. The risk of not detecting a misstatement resulting from fraud is higher than one resulting from error.
For a prospective Checkers franchisee, understanding that the company's financials are audited according to US GAAS provides a level of confidence in the accuracy and reliability of the financial information presented. This is because the audit is conducted under a consistent and recognized set of standards. It is important to note, however, that even with these standards, there is still a risk of undetected misstatements, particularly those resulting from fraud.