Ray started out with one small print shop. his business has grown so much that he now has two other branches across town. ray has found that having three locations has greatly increased his production levels. he also notices that the price he pays for supplies (paper, ink, and packaging materials) has gone down considerably since he can now buy these items in bulk quantities. this exemplifies the principle known asa. empowerment. b. unity of command. c. bureaucracy. d. economies of scale.

Greenbloom garden centers is a small, privately held corporation that has two stores in orlando, florida. the greenbloom 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 control of the operations. the family does not intend to sell stock in the company. required: discuss at least three factors that may make an audit necessary and potentially valuable for the company. be sure to consider the concept of information risk.