In respect of each of the situations outlined below, reach a conclusion on whether or not you would modify your audit report. Give reasons for your conclusion and describe the effect on your audit report.

Special Times is a web based company that delivers luxury cards, gifts and flowers. The year end is 30 September 2020. The year-end audit is almost complete and the statements are due to be signed shortly. Year-end revenue is 5.2m and profit before tax and interest is 0.6m. A key customer with a year-end receivables balance of 150,000 has notified Special Times on the 10th November 2020 that they are experiencing cash flow difficulties due to Covid 19 and are unable to make any payments in the near future. The Finance Director has notified the Audit Partner that the outstanding balance will be written off as an irrecoverable debt next year in the 2020/21 financial statements.