Question $2(4$ points$)$

Boesser, Miller and Co$.($BMC$)$ is a small but rapidly growing audit firm located in

Kelowna, BC$.$ Its success is largely due to the growth of several clients that have

been taking advantage of remote work opportunities outside of major cities. One of

these clients, Triumph Ltd$.,$ is preparing for an initial public offering $($IPO$)$ and will

need to comply with additional reporting regulations. Triumph is a software

developer that has several photo processing apps popular with professional

photographers. If the IPO is not successful, it would be a likely takeover target by a

larger company. Triumph's rapid growth has meant that it is "cash poor" and its

accounting systems are struggling to keep up with the growth in business

transactions. The client continuance decision is about to be made for the next

financial year.

You are the managing partner at BMC$,$ and you recognize that the audit firm needs

to make some changes to deal with the issues created by the changing circumstances

of their major client and the audit firm's overall growth. Triumph will be the first

public company audit for BMC$,$ and the sole client that is performing software

development.

Required

What factors should be considered when making the client continuance decision for

Triumph for the next financial year?