One of your neighbors, Hans House, is a minority shareholder of Grackle Corporation, a private company. Grackle is also the company that employs Hans. Recently Hans and the other Grackle Corporation shareholders were asked to approve a resolution that would waive the requirement for the company to have its financial statements audited. The company has been audited in past years but would have a review instead of an audit if the resolution is passed unanimously by the shareholders. Hans knows that you are an advanced accounting student and has asked for your advice on whether he should vote for or against the audit waiver.

Required:
List the factors that Hans should consider in making this decision. What fact situations would support voting for the audit waiver, and what fact situations would indicate he should vote against the waiver?