Ben & James

$$

Ben & James is a family$-$owned private paint manufacturer. The company was established in $1978$ by brothers Ben and James Moore. Both brothers and their families are heavily involved in the day$-$to$-$day operation of the company. Ben is the CEO and James wife, who is a CPA, is the CFO.$$ Until $2017$ the company manufactured and sold paint for indoor$-$use only. That year, Ben and James decided to approach their local bank that they have been dealing with for the past $40$ years, to obtain a loan to finance the company$$s expansion into the outdoor$-$use paint market. The loan agreement requires Ben & James to provide the bank with quarterly financial statements, which have been reviewed by a public accounting firm.$$

Hillsburg Hardware Limited

Hillsburg Stores Ltd$.$ began operations in $1980$ in Halifax, Nova Scotia, as a family$-$owned retail hardware store chain. In $1990,$ the company changed its name to Hillsburg Hardware Limited. In $2002,$ the Hillsburg family sold a controlling interest in the company to Wilkshaw Capital, an investment group. Although the Hillsburg family is no longer actively involved in the company operations, it maintains a minority interest in the company and receives annual dividends. In $2007$ the Hillsburg family requested that the company$$s financial statements be audited.$$ The Hillsburg family became concerned with the frequent changes in the company$$s top management as almost everyone the family used to know has left the company. Why would the Hillsburg family request that the company$$s financial statements be audited, whereas the bank requested that Ben & James quarterly financial statements be reviewed?