What is the auditor's responsibility concerning Even Hotels' ability to continue as a going concern?

According to the 2025 FDD, the auditor's responsibility regarding Even Hotels' ability to continue as a going concern is tied to the management's evaluation. Specifically, in preparing the financial statements, the management of Six Continents Hotels, Inc., the parent company, and Holiday Hospitality Franchising, LLC, the franchisor, is required to assess whether there are conditions or events that raise substantial doubt about the company's ability to continue operating for one year after the financial statements are issued.

The auditor's role is to audit the financial statements in accordance with auditing standards generally accepted in the United States of America (US GAAS). These standards require the auditor to be independent and meet ethical responsibilities. The auditor's report expresses an opinion on whether the financial statements present fairly the financial position, results of operations, and cash flows of the company in accordance with accounting principles generally accepted in the United States of America.

While the management is responsible for evaluating the going concern, the auditor's responsibility is to audit the financial statements and provide an opinion on their fair presentation. The auditor must obtain sufficient and appropriate audit evidence to support their opinion. This includes assessing the appropriateness of management's use of the going concern basis of accounting in the preparation of the financial statements.