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Background

TechWave Solutions Inc. $("$TechWave$"$ or the "Company"$)$ is a privately owned software enterprise

based in Calgary, Alberta. Over the past three years, TechWave has achieved remarkable revenue

growth, primarily due to its innovative and customized software solutions for e$-$commerce.

Building on this success, TechWave is now planning to expand its operations into the United States.

This strategic move aims to capture a larger market share and further accelerate the Company's

growth. The U$.$S$.$ market offers significant opportunities for TechWave, given the rapidly evolving

landscape of e$-$commerce platforms.

To support this ambitious expansion, TechWave is seeking a $$5,000,000$ loan from RBC$.$ This loan

will be crucial in establishing a U$.$S$.$ office, which will serve as the central hub for the Company's

American operations. Additionally, the funds will be used to hire a team of skilled professionals,

including software developers, sales representatives, and customer support staff, to ensure a

smooth entry into the new market. Furthermore, a portion of the loan will be allocated to robust

marketing and sales efforts aimed at increasing brand awareness and driving customer acquisition

in the United States.

As part of the loan application process, RBC requires an independent audit of TechWave's financial

statements for the past two years. This audit is essential to verify the Company's financial health

and stability, providing RBC with the assurance needed to approve the loan.

TechWave is confident that with financial backing from RBC$,$ it will successfully enter the U$.$S$.$

market, replicate its Canadian success, and continue its upward growth trajectory. The Company

remains committed to delivering high$-$quality software solutions that empower SMEs to thrive in an

increasingly digital world.

As the auditor for TechWave, you have been provided with the draft financial statements for the

years ended December $31,2023,$ and $2022,$ along with some supporting notes.

In your preliminary meeting with management, you learned that the software engineers integrated

an Al tool into the Market Maven platform during $2023$ and enhanced the user experience on other

platforms. However, in late $2022,$ the Company experienced a system glitch on its Trade Pulse

platform, leading to a decrease in contract renewals for this platform in $2023.$ To protect the

Company's brand reputation as it expands into new markets, management has decided to retire the

Trade Pulse platform in $2024.$

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