You are an audit manager in Barsa & Co. and have been assigned to audit the financial statements of a new client, VSK Sdn. Bhd. (VSK) for the financial year ended 31 January 2021. VSK is a company that produces a range of cosmetic products using local fruits. VSK supplies its products only to retailers. The final audit is almost finish and the financial statements and audit report are due to be signed next week. Total assets for the year was RM13 million and profit before taxation was RM4.5 million. You are reviewing the current audit file for the company and your audit senior had left a note for your review. The following points have been included in the note:

Legal claim

At the end of the year, the company received notification from one of its customers, Soft Care Sdn. Bhd., that the company's cosmetic products have caused skin issues to its customers. As a result, Soft Care Sdn. Bhd. has lost significant revenues and has informed VSK that they intend to take legal action against them for loss of income. The finance director told that VSK will defend the claim. The finance director had adequately disclosed this information in the notes to the accounts as there is high uncertainty over the outcome of the case...

Discuss the impact of the following on VSK Sdn. Bhd.'s auditor's report: