1. In June 2021, Deloitte agreed to pay almost P20 million to settle a class action lawsuit related to its audit of VXYZ, a homebuilding company. The lawsuits claims that Deloite should have notice the homebuilder was issuing an inaccurate financial statement as the industry began to decline. A spokeperson for Deloitte indicated that the firm denies all liability and settled to avoid expense and uncertainty of continued litigation. Comment what is the possible reason why this happened using the concept in risk assessment and audit response.