When auditing Hardees' combined consolidated financial statements, what two professional practices must be exercised?

According to Hardees' 2025 Franchise Disclosure Document, when performing an audit in accordance with Generally Accepted Auditing Standards (GAAS), the auditors must exercise two key professional practices. These practices ensure the integrity and reliability of the financial statements.

First, the auditors must exercise professional judgment throughout the audit. This means they need to apply their expertise and experience to make informed decisions about the audit procedures, the evaluation of evidence, and the overall assessment of the financial statements.

Second, the auditors must maintain professional skepticism throughout the audit. This requires them to have a questioning mind and critically assess the information provided by management. They should not assume that management is dishonest, but they should also not blindly trust everything they are told. Instead, they need to carefully consider the risks of material misstatement, whether due to fraud or error, and design their audit procedures to address those risks.