TradeWell Limited is a privately$-$owned corporation that manufactures and sells steel coils. The mission of TradeWell is to produce steel coils of the highest quality. TradeWell$’$s vision is to become the leading manufacturer of steel coils across Canada. TradeWell was founded in $1995$ by Michael Stevens. Michael was the main contributor to TradeWell$’$s growth. Unfortunately, during $2023$ Michael$’$s health began to fail and he was forced to reduce his involvement. On January $5,2024,$ Michael passed away at the age of $74.$ Michael$’$s child inherited $100\%$ of the shares of TradeWell and is now acting as the new CEO. Michael$’$s child is a real estate agent and has no experience in running TradeWell. Michael$’$s child is constantly worried about the profitability of the company and would like it to succeed.

Michael established a competent Board of Directors in $2005,$ which have met semi$-$annually since inception to advise on business operations. The Board has taken a more active role in representing TradeWell since Michael$’$s passing.

The current Chair of the board is Anthony Carpenter who retired as the Engagement Partner of TradeWell Limited two years ago from TradeWell$’$s public accountant SC LLP$.$

Today is January $25,2024,$ You, CPA are employed by SC LLP as an In Charge Auditor. You have just left a meeting with your Engagement Manager who debriefed you on key topics of the file. Both yourself and the Engagement Manager have been on the TradeWell file for multiple years and have experience with the client. Please refer to Appendix I for your written notes.

Your engagement manager has requested the following:

$1.$ Discuss the implications of changing from a review to an audit. What will you need to consider? Please use specific case facts. $(2$ Marks$)$