What ethical responsibilities are the auditors required to meet in relation to their audit of Checkersrallys' financial statements?

According to the 2025 FDD, the independent auditors, whether Ernst & Young LLP for the period ending January 1, 2024, or Grant Thornton LLP for the period ending December 30, 2024, are required to adhere to specific ethical responsibilities during their audit of Checkersrallys' financial statements. Both firms conducted their audits in accordance with auditing standards generally accepted in the United States of America (GAAS or US GAAS). As part of these standards, the auditors are mandated to be independent of Checkersrallys and to fulfill other ethical responsibilities as dictated by the relevant ethical requirements pertaining to their audits.

These ethical requirements are in place to ensure the integrity and objectivity of the audit process. Independence is crucial so that the auditors can provide an unbiased opinion on the fairness of Checkersrallys' financial statements. By adhering to these ethical standards, the auditors aim to provide reasonable assurance that the financial statements are free from material misstatement, whether due to fraud or error.

For a prospective Checkersrallys franchisee, this means that the financial statements presented in the FDD have been examined by an independent firm that is ethically bound to provide an objective assessment. This helps to increase confidence in the financial information provided, though it's important to remember that even an audit conducted under GAAS provides 'reasonable assurance' rather than an absolute guarantee against misstatements. Franchisees should still carefully review the financial statements and consider seeking advice from their own financial advisors.