Regarding the audit of Hardees' combined consolidated financial statements, with whom are the auditors required to communicate?

According to Hardees's 2025 Franchise Disclosure Document, the auditors, when performing an audit in accordance with Generally Accepted Auditing Standards (GAAS), have specific communication responsibilities. These responsibilities are focused on ensuring transparency and accountability in the audit process.

The auditors are required to communicate with those charged with governance. This communication includes several key aspects of the audit, such as the planned scope and timing of the audit to provide an overview of the audit's extent and schedule. They also must communicate significant audit findings, which would include any material misstatements or irregularities discovered during the audit process. Additionally, the auditors must communicate certain internal control-related matters that were identified during the audit, highlighting any weaknesses or deficiencies in the company's internal controls.

For a prospective Hardees franchisee, this indicates that the financial statements have been subjected to external scrutiny, and the auditors are obligated to keep the governance structure informed about important aspects of the audit. This communication helps ensure that those in charge of overseeing the company are aware of the financial health and internal control environment of Hardees. This can provide a level of assurance regarding the reliability of the financial information presented.