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After you have drafted the report as above, the following information was communicated to you by the firms lawyer. A substantial claim has been filed
After you have drafted the report as above, the following information was communicated to you by the firms lawyer. A substantial claim has been filed against the company by a major customer. No provision has been made for legal costs or compensation payable. There is no indication of what the judgment may be. The directors have received advice from the lawyer that the claim can be successfully defended. How will this affect the audit report you are drafting?
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