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Question - Greenbloom Garden Centers is a small, privately held corporation that has two stores in ON. The Greenbloom family owns 100% of the company's shares, and family members manage their 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. Such expansion may consider long term financing and is likely to reduce the family's day to day operations. The family does not intend to sell the shares to the public.
Required -
I. Discuss two factors that make an audit necessary for the company.
II. Discuss two reasons why an audit may not be necessary for Greenbloom.
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