During the year, a company commenced legal action against a former managing director for alleged theft. At the reporting date, the company's lawyer is of the opinion that it is more than likely that the company will receive a substantial amount in compensation. How should this be treated in the financial statements? O Provide for the amount O Recognize a receivable ODo not adjust or disclose O Disclose a contingent asset (2 points) Not Yet Answered Time remaining 43.13 Which of following would NOT be found in a letter of representation? That management is not aware of any impending legal actions O That management has no plans to discontinue any part of the operations That company is a going concern That management has fulfilled its responsivities for the preparation of the financial statements