What ethical requirements are auditors of Jack In The Box required to meet?
Jack_In_The_Box 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 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 93–94)
What This Means (2025 FDD)
According to the 2025 Jack In The Box Franchise Disclosure Document, the auditors, KPMG LLP, are required to be independent of the company. They must also meet other ethical responsibilities in accordance with the relevant ethical requirements relating to their audits. The audit was conducted in accordance with auditing standards generally accepted in the United States of America (GAAS).
This means that the auditors must maintain objectivity and impartiality to ensure the integrity and reliability of the financial statements. Independence is crucial to provide assurance to potential franchisees and investors that the financial information presented by Jack In The Box is unbiased and fairly represents the company's financial position.
For a prospective Jack In The Box franchisee, this signifies that the financial statements have been reviewed by an independent party adhering to professional standards. This helps in making informed decisions about investing in a Jack In The Box franchise, as it adds credibility to the financial data provided in the FDD.