Greenbloom Garden Centers is a small, privately held corporation that has two stores in Orlando, Florida. The Greenbloom family owns 100 percent of the companys stock, and family members manage the operations. Sales at the companys stores have been growing rapidly, and there appears to be a market for the companys sales conceptproviding bulk garden equipment and supplies at low prices. The controller prepares the companys 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 familys day-to-day involvement in all of the companys operations. The family does not intend to sell stock in the company.

Required:

Which of the following factor(s) is/are are the most likely to make an audit neccessary or valuable for the company?

Note: You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.

check all that apply

• An audit might be required by the government as the company begins to expand across state lines.unanswered
• As the company expands, the owners will find that an audit could prove to be an additional monitoring activity.unanswered
• An audit will increase the value of the company's products because the financial statements are more accurate.
• If long-term financing is required to fund an expansion, an audit might be required by a potential lender.