Mr. Danny operates a medium-sized manufacturing company, MSI Sdn Bhd., with annual revenue of around RM 4 million. He serves as the manager and is deeply involved in the day-to-day operations as the sole proprietor. Currently, the firm has no long-term debt. Mr. Danny has little interest in expanding the activities of his business in the future, as doing so will decrease the amount of time he can spend with his family. Some of Mr. Danny's friends who run companies of the same size as his have carried out annual audits on their financial reports of their business.

Required:

(a) Should Mr. Danny have the financial reports of MSI Co. audited by the independent auditor? If so, why? If not, why not?