Godwin, Key & Associates is a small, but rapidly growing, accounting firm. Its success is largely due to the growth of several clients

that have been with the firm for more than five years. One of these clients, Carolina Company Inc., is preparing to transition from a

private company to a publicly traded company and must comply with additional reporting regulations. Carolina Company's rapid

growth has meant that it is financially stretched, and its accounting systems are struggling to keep up with the growth in business.

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

The managing partner of Godwin, Key & Associates, Rebecca Sawyer, has recognized that the firm needs to make some changes to

deal with the issues created by the changing circumstances of its major client and the firm's overall growth. She is particularly

concerned that the firm could be legally liable if Carolina Company's financial situation worsens and it fails.

Evaluate the factors that Rebecca should consider when making the client continuance decision for Carolina Company Inc. for the

next fiscal year.