What is the auditor's responsibility regarding the 'other information' included in Hardees' supplemental schedules?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
Management is responsible for the other information included in the supplemental schedules. The other information comprises the combining consolidating balance sheets and combining consolidating statements of operations included in the supplemental schedules, but does not include the combined consolidated financial statements and our auditors' report thereon. Our opinion on the combined consolidated financial statements does not cover the other information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the combined consolidated financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the combined consolidated financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, the auditor's responsibility regarding the 'other information' included in the supplemental schedules is limited. Management is responsible for the 'other information' which includes the combining consolidating balance sheets and statements of operations within the supplemental schedules. This 'other information' does not include the combined consolidated financial statements or the auditor's report on those statements.
The auditor's opinion on the combined consolidated financial statements does not extend to the 'other information', and the auditors do not express any opinion or assurance on it. However, in connection with their audit of the combined consolidated financial statements, the auditor is responsible for reading the 'other information'.
The auditor's role is to consider whether there are any material inconsistencies between the 'other information' and the combined consolidated financial statements, or if the 'other information' appears to be materially misstated. If the auditor concludes that there is an uncorrected material misstatement in the 'other information', they are required to describe it in their report. This means a potential Hardees franchisee should be aware that while the main financial statements are audited, the supplemental schedules have a different level of scrutiny, focused on consistency and obvious misstatements rather than a full audit.