Green bloom Garden Centers is a small, privately held corporation that has two stores in Orlando,…

Green bloom Garden Centers is a small, privately held corporation that has two stores in Orlando, Florida. The Green bloom family owns 100 percent of the company’s stock, and family members manage the operations. Sales at the company’s stores have been growing rapidly, and there appears to be a market for the company’s sales concept—providing bulk garden equipment and supplies at low prices. The controller prepares the company’s financial statements, which are not audited. The company has no debt but is considering expanding to other cities in Florida. Such expansion may require long-term borrowings and is likely to reduce the family’s day-to-day involvement in all of the company’s operations. The family does not intend to sell stock in the company.

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Discuss the factors that may make an audit necessary and potentially valuable for the company. Be sure to consider the concept of information risk.

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