What ethical responsibilities are the auditors required to meet when auditing the consolidated financial statements for Hardees?

According to Hardees's 2025 Franchise Disclosure Document, the auditors performing the audit of the consolidated financial statements must adhere to specific ethical responsibilities. The auditors are required to be independent of the company, ensuring that their judgment and opinions are not influenced by any relationships or interests that could compromise their objectivity. Additionally, they must meet other ethical responsibilities in accordance with the relevant ethical requirements pertaining to their audits. These requirements are based on auditing standards generally accepted in the United States of America (GAAS).

These ethical standards are in place to ensure the integrity and reliability of the financial statements. Independence is a cornerstone of auditing, as it allows auditors to provide an unbiased assessment of Hardees's financial position and performance. By adhering to these ethical responsibilities, the auditors enhance the credibility of their report and provide assurance to stakeholders, including potential franchisees, that the financial information presented is trustworthy.

For a prospective Hardees franchisee, this means that the financial statements have been reviewed by an independent party who is ethically bound to provide an unbiased opinion. This offers a level of confidence in the financial health and stability of the company, which is crucial when making a significant investment decision. The audit evidence obtained must be sufficient and appropriate to provide a solid foundation for the auditor's opinion, further reinforcing the reliability of the financial statements.