please read the below case and write a letter to Huey swann concerning the audit implications regard the change in settlement estimate. assume that ducks 'R Us is a privately-held company. Summarize your finfdngs and indicate what authority supports your conclusion.

Your client, Ducks 'R Us (\"Ducks\") was founded in 1953 and manufactures rubber ducks for use in bathtubs. Ducks has been very protable in the past, but sales have been sliding in recent years. The market is now ooded with other bathtub novelties, and recent surveys show that fewer adults nd the time to take a relaxing bath. In addition, a lawsuit was led against the company in the second quarter of 2018. The lawsuit claims that ducks produced in the first quarter of 20 13 lost their squeak when immersed in water for an extended period of time. You completed the audit of Ducks' nancial statements for 2018 and issued an unqualied opinion on those statements on March 29, 2019. Your report was included in Ducks' nancial statements provided to the bank on March 31, 2019. On May 7, 2019, Huey Swann, the President of Ducks, called to tell you about a conversation he had just had with Ducks' attorney. The case regarding the defective ducks had been settled. Unfortunately, the $1.5 million that Ducks anticipated it would settle for (and accrued in the nancial statements as of December 2018) was underestimated by $300,000. Ducks' total liability would be $1.8 million based on the settlement. Ducks fully disclosed the settlement in its nancial statements for the rst quarter ended March 31, 2019 led with the bank on May 7, 2019. Ducks is in the process of nalizing its annual report to shareholders, which will include your report on the 2018 nancial statements. They expect to send out the annual reports on May 18, 2019. Exercise: Write a letter to Huey Swann concerning the audit implications regarding the change in settlement estimate. Assume that Ducks 'R Us is a privately-held company. The letter should include the standard letter components, summarizing your ndings and indicating what authority supports your conclusions