Odom Company is a medium-sized producer of fishing rods with approximately $5 million of annual sales. The company is wholly owned by Mike Odom, who serves as its president and is active in its daily operations. There is no long-term debt, and there are no current plans to incur any. Mr. Odom has no interest in expanding his company's operations in the future because to do so would reduce the amount of time he is able to devote to his favorite pastime, fishing. Some of Mr. Odom's friends who operate businesses of the same size have annual audits of their financial statements. Required:

a. Give reasons why Mr. Odom should have a financial statement audit performed by an independent CPA.

b. Give reasons why Mr. Odom should not have a financial statement audit performed.