The NASAA statement of policy regarding investment advisors that wish to exercise discretion in a customer account:A. Requires that written power of attorney be obtained prior to the age and exercising discretionB. Permits that the agent can exercise discretion for up to 10 days upon the verbal authorization of the customer, as long as written power of attorney is obtained by the end of the time. C. Permits the agent to exercise discretion for up to 30 days upon the verbal authorization of the customer, as long as written power of attorney is obtained by the end of that time.

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.