You are auditing Bothell BBQ (BBBQ) Supplies for the year ending June 30, 2019. You completed your audit on August 15, 2019, signed the audit report and mailed it on September 1, 2019. Assume each event presented is highly material individually. appropriate action you would take. For each event, identify the On December 1, 2019, you discovered that a major customer of BBBQ went bankrupt in July 2019 due to ongoing declining financial i health. The sale generating the receivable to BBBQ originated in 2018. On December 15, 2019, you discovered that a major customer of BBBQ went bankrupt in October 2019 and the sale and receivable had taken place in February 2019 and the amount was deemed fully collectible during your testing in August 2019. BBBQ had disclosed a pending lawsuit that originated in 2017 in the June 30, 2019 financial statement footnotes. The disclosure included the legal opinion that BBBQ expected a favorable outcome and no loss liability had been accrued accordingly. After your audit was issued, the court case was finalized and BBBQ lost. In May 2019, you discovered an uninsured lawsuit against BBBQ that had originated in March 2019. In August 2019, you discovered that a major customer of BBBQ went bankrupt in July 2019 and the cause of the bankruptcy was an unexpected loss of a lawsuit against them in July 2019. [Choose ] (Choose] [Choose ] [Choose] [Choose ] You are auditing Bothell BBQ (BBBQ) Supplies for the year ending June 30, 2019. You completed your audit on August 15, 2019, signed the audit report and mailed it on September 1, 2019. Assume each event presented is highly material individually. appropriate action you would take. For each event, identify the On December 1, 2019, you discovered that major customer of BBBQ went bankrupt in July 2019 due to ongoing declining financial health. The sale generating the receivable to BBBQ originated in 2018. On December 15, 2019, you discovered that a major customer of BBBQ went bankrupt in October 2019 and the sale and receivable had taken place in February 2019 and the amount was deemed fully collectible during your testing in August 2019. BBBQ had disclosed a pending lawsuit that originated in 2017 in the June 30, 2019 financial statement footnotes. The disclosure included the legal opinion that BBBQ expected a favorable outcome and no loss liability had been accrued accordingly. After your audit was issued, the court case was finalized and BBBQ lost. In May 2019, you discovered an uninsured lawsuit against BBBQ that had originated in [Choose ] Disclose in the June 30, 2019 footnotes Request the client to recall the June 30, 2019 statements for revision Take no action Adjust the June 30, 2019 financial statements [Choose] [Choose] [Choose] March 2019. In August 2019, you discovered that a major customer of BBBQ went bankrupt in July 2019 and the cause of the bankruptcy was an unexpected loss of a lawsuit against them in July 2019. [Choose ] 4 On July 15, 2019, BBBQ settled a lawsuit that had originated in 2017 and was recorded as a contingent liability for $150,000 less than the settlement amount. In July 2019, you discovered that a customer of BBBQ went bankrupt on July 5, 2019. BBBQ had outstanding receivables from the customer dating back to 2018. [Choose ] [Choose ]