Sarah is an audit senior with Childs, Maxwell and Weaver, LLP, Sarah specializes in auditing loan loss reserved for financial institution clients. This current year she has noticed that two of her financial institution clients in town have written loans off to a loan customer, Mr. T (fictional name to protect the guilty). Mr. T is well known in town as a highly successful real estate developer and businessman with many different business dealings. As Sarah is auditing her third financial institution client in town, she notices that the bank has loans of $3.5 million outstanding to Mr. T. The current loan loss reserve. Ms. Childs, senior partner of the audit, wants to know how the audit firm can justify the increase loan reserve account. What can and should Sarah disclose about Mr. T