The financial year of your audit client Coco Ltd ended on 30 June 2019.Your audit report was signed on 20 September 2019 and the financial statements were issued on 1 October 2019.

The auditors have discovered the following event:

A fire broke out in the audit client's warehouse on 24 September 2019 destroying the warehouse and its contents, both of which were uninsured.An estimated $1.2 million loss resulted from the fire.

Required:

Explain the auditor's responsibilities and the appropriate course of action for the auditor. Where appropriate, include any specific amendments to the financial statements.