SEATWORK NO.

Name:
Date:

After learning the overview of auditing and using other resources, discuss the factors that may make
an audit necessary and potentially valuable for the company based on the situation given below.
Make sure to consider the concept of information risk? (50 words)

Charmaine Flowers, a small grower of tropical flowers in Davao City is planning to expand its
business to other parts in the Philippines. Sales for the past five years of operation has been steadily
growing with all the innovations introduce by Charmaine, the owner, to the business. So far, the
company has no debt. The expansion requires a huge amount of capital through loans. The
expansion will also limit the involvement of Charmain to the day-to-day operations of the business
especially in areas far from Davao City.