• A Chicago area defense subcontractor (ABC) manufactures metal gear boxes for tanks and fighter aircraft. It has been in business since the 1960s and has a December 31^st year-end.
• In 2017, a Canadian Company (Parent) purchased 100% of ABC ACQUISITION
• In 2018 the Company had a slight loss.
• In 2019, the Company had a much larger loss, significant decline in sales & terminated about 25% of its workers. The sales decline was directly caused by a steep decline in orders for tanks & planes by the Department of Defense.
• In 2020, preliminary numbers reviewed by your audit firm during October, 2020 (as part of the planning phase of the 12/31/2020 year end audit), reflected a very large loss, a continued decline in sales & additional staff reductions.
• In 2018, 2019, and 2020 ABC has suffered recurring losses from operations, and has had a net capital deficiency.
• ABC expects continued weak demand for its defense products in 2021 & beyond.
• ABC hopes to use its manufacturing expertise to enter into other non-defense markets starting in 2021.
• Since the acquisition, the ABC Company has maintained large bank loans pursuant to bank lines with a local bank. There is no additional borrowing capacity on these bank lines.
• The audited financial statements are due 90 days after the 12/31/2020 year end i.e. 3/31/2021. Your audit firm intends to release the audited financial statements by this due date.
• The ABC Company bank debt is due on demand, is secured by its equipment and is guaranteed by Parent.
• Pursuant to Canadian / U.S. banking procedures, the Parent obtains a Letter of Credit from its Canadian bank to serve as collateral for its guarantee of ABCs U.S. bank debt. (The letter of credit will be converted to cash to payoff ABCs local bank debt if ABC defaults on this bank debt). The Canadian Bank which issues the Letter of Credit is Canadas 2^nd strongest Bank.
• The letter of credit is for a 1-year term (i.e. from each March 1st to the following March 1st) & automatically renews each March 1st unless any of the parties to the arrangement wants to terminate the letter of credit.
• Substantially all of the work for the 2020 audit is completed by February 15, 2021.

What is the best date to release the Audited Financial Statements for the year ended December 31, 2020 from the standpoint of audit exposure? Be specific and explain why.