(c) Your firm is the auditor in charge for Elegance Berhad. The audit was completed on 23 March 2018 and the audited financial statements and auditor's report were issued and submitted to Securities Commission on 31 March 2018. The following subsequent events are unrelated: 1. The court ruled in favour of the client company on 28 January 2018 for a lawsuit from customer that involved alleged breach of contract in 2016. The client had provided for the full amount of the potential liability for the claim. The customer will not appeal the court's ruling. 2. On 15 February 2018, the client applied to the Securities Commission for the issuance of 15 million new ordinary shares of RM1.00 each. The proposed new shares represent 10% of the issued and paid-up capital of the company as at 31 December 2017 3. On 10 March 2018, a major investment advisor has issued an unfavourable report on the client company's long term prospects. The share price of the company subsequently decline by 20%. 4. On 31 May 2018, the auditor discovered that a major customer of Elegance Berhad went bankrupt on 5 April 2018. The sales had taken place on 15 August 2017. The amount appear collectible as at 31 December 2017 and 23 March 2018. Required: In each of the situations (1 through 4) above, state from the following the appropriate action and justify your answers: i. Adjust the 31 December 2017, financial statements. ii. Disclose the information in notes to the accounts in the 31 December 2017, financial statements. Request the client revise and reissue the 31 December 2017, financial statements. The revision should involve an adjustment to the 31 December 2017, financial statements. iv. No action is required. (9 marks)