AH Family is a large privately owned and operated corporation in its 40th year of operation. When Patricia, the founder’s daughter, recently became AH Family’s CEO, she formulated an aggressive multinational expansion plan that will add locations in Europe and Asia. To accomplish this goal, Patricia and the Board of Directors realized its need to raise $100 million in new capital. In order to raise such high levels of new capital, AH Family will have to go public. Currently, AH Family employs a local CPA firm to conduct yearly audits of the financial statements for its creditors.

Required:
a. Identify the types of audits AH Family will have to undergo if management chooses to take the company public.
b. Identify the governing and standard setting bodies that will affect AH Family if it chooses to become a public company.
c. Is it possible that new costs will result if the company goes public? Explain