Does the text specify any dependencies related to the accuracy of the financial data presented for Checkersrallys?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
were audited by other auditors, who expressed an unmodified opinion on those consolidated financial statements in their report dated August 13, 2024.
Responsibilities of management for the financial statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is required to evaluate whether 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 one year after the date the consolidated financial statements are issued.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with US GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the consolidated financial statements.
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.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 91)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the accuracy of the financial statements is dependent on several factors. Management is responsible for preparing and fairly presenting the consolidated financial statements in accordance with accounting principles generally accepted in the United States of America. This includes designing, implementing, and maintaining internal controls relevant to preparing financial statements free from material misstatement, whether due to fraud or error.
Furthermore, the financial statements' preparation requires management to evaluate conditions or events that could raise substantial doubt about Checkersrallys's ability to continue as a going concern for one year after the statements are issued. The independent auditor, Grant Thornton LLP, also plays a crucial role. Their objectives are to obtain reasonable assurance that the financial statements are free from material misstatement, whether due to fraud or error, and to issue an auditor's report including their opinion. However, reasonable assurance is not absolute, and there's a risk that material misstatements, especially those resulting from fraud, may not always be detected.
Additionally, Note 2 to the consolidated financial statements highlights that the preparation of these statements in conformity with U.S. GAAP requires management to make estimates and assumptions. These estimates affect the reported amounts of assets, liabilities, and disclosures of contingent items, as well as reported revenues and expenses during the reporting period. Actual results could differ from these estimates. All of these factors, from management's internal controls and evaluations to the auditor's assessment and the use of estimates, collectively influence the reliability and accuracy of the financial data presented by Checkersrallys.