1) You are auditing of Outback Supplies Ltd, a listed company that specializes in camping supplies for distribution throughout Australia. It is now 6 August 2020 and you are finalising your audit of Outback Supplies Ltd financial report for the year ended 30 June 2020. The auditor's report and directors' declaration are due to be signed on 20 August 2020. As part of your completion procedures, you have noted the following material issues.

On 27 June 2020, one of Outback Supplies Ltd Sydney warehouses collapsed. At the time of the incidents, the building and products were destroyed, including all of the forward sales orders for the month of July.

Management did not tell you about the incident when it occurred, but have included a note in the financial report about it. They noted significant damage to the building and to the stock on hand at the time of the fire. Despite this, no adjustment has been made to the 2020 financial report.

REQUIRED

1. For the above events, identify and justify what action, if any, is most appropriate.
2. Assuming the same facts as for (a), except that the incident occurred on 18 July 2020, identify and justify what action, if any, is most appropriate.
3. Assuming the same facts as for (a), except that the incident occurred on 25 August 2020, identify and justify what action, if any, is most appropriate