What ethical responsibilities are the auditors required to meet in relation to their audit of Hardees' combined consolidated financial statements?
Hardees Franchise · 2025 FDDAnswer from 2025 FDD Document
We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Combined Consolidated Financial Statements section of our report. We are required to be independent of the Company and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Hardees's 2025 Franchise Disclosure Document, the auditors who conduct the audit of the combined consolidated financial statements must adhere to specific ethical responsibilities. These responsibilities are in accordance with the relevant ethical requirements pertaining to their audits. Furthermore, the auditors are required to be independent of the company, ensuring that their judgment and opinions are unbiased and objective.
This requirement ensures the integrity and reliability of the financial statements. Independence is a cornerstone of auditing, as it prevents conflicts of interest that could compromise the accuracy and fairness of the audit. By adhering to these ethical standards, the auditors enhance the credibility of the financial statements, providing stakeholders, including potential Hardees franchisees, with confidence in the financial health and performance of the company.
In addition to maintaining independence, the auditors must also ensure they obtain sufficient and appropriate audit evidence to support their opinion. This involves a thorough examination of financial records, internal controls, and other relevant information. By meeting these ethical and professional responsibilities, the auditors play a crucial role in safeguarding the interests of investors, creditors, and other stakeholders who rely on the accuracy and transparency of Hardees's financial reporting.