Bright future technologies is a large multina corporation that operates in the technology secto. The company has a robust system of internal controls and financial reporting processes which are overseen by an experienced management tea and board of director. The company's financial statements for the year ended December 31, 2022 were auditEd by your audit firm, integrity auditor.

 

During the audit you identified a significant legal dispute between the company and former business partner which could have a material impact on the company's finan position and results of operation. The dispute relate to alleg breaches of contract and intellectual property infringement and the potential damages could exceed several millions dollar.

 

You thoroughly assessed the company handling of the dispute and found that management had appropriately discloses the dispute in the financial statements and had provided sufficient information about the nature and potential impact of the disput. The audito also found that management had obtained legal opinions from reputable law firms and had recognised an appropriate provision for the potential damages in the financial statement

 

Use the six step approach to determine what audit opunion is most appropriat. Explain and justify all aspects?