Diane Harris, public accountant, is the auditor of Fine Deal Furniture, Inc. In the course of her audit for the year ended December 31,2001, she discovered that Fine Deal had serious going concern problems. Henri Fine, the owner of Fine Deal, asked Harris to delay completing her audit.

Harris is also the auditor of Master Furniture Builders Ltd., whose year end is January 31. The largest receivable on Master Furniture's list of receivables is Fine Deal Furniture; the amount owing represents about 45 percent of Master Fur¬ niture's total receivables, which in turn are 60 percent of Master Furniture's net assets. The management of Master Furniture is not aware of Fine Deal's problems and is certain the amount will be collected in full.

Master Furniture is in a hurry to get the January 31, 2002, audit finished because the company has made an application for a sizable loan from their bank to expand their operations. The bank has informally agreed to advance the funds based on draft financial statements submitted by Master Furniture just after the year end.

Required What action should Harris take and why?