ABC Ltd has placed a deposit with an overseas supplier totalling $7 million for the manufacture of toy products on 15 April 2019. It is expected that this deposit equals to 70% of the company's annual purchase from July 2019 to June 2020. On 15 January 2020, the supplier closed due to floods and earthquakes. The opinions from experts on 7 March 2020 indicated that it was unlikely that the deposits would be recovered. Despite this advice, the company's director refuses to accommodate this information in the company's reports. The year-end for ABC Ltd.'s financial report is 30 June 2020, and the audit report is due to be signed and issued on 30 August 2020