You are auditing DiGenova Home Appliances for the calendar year 2020. Among other items related to the audit, DiGenova Home Appliances was being sued for personal injury resulting from the malfunction of one of their products. The lawsuit was initiated by Ivan Costner in September, 2020. Management and the company's outside legal counsel estimated the loss from the suit to be approximately $250,000. This amount is accrued and properly disclosed in the footnotes of the financial statements. You have no reason to believe that the estimate is inaccurate. You completed your audit and dated your report March 2, 2021. The financial statements were issued on March 14, 2021. On March 20, 2021, you read in a national business periodical that the jury in the trial awarded Ivan Costner $1.5 million.What responsibility, if any, do you have regarding the news of March 20, 2021. (Should you require your client to do anything?)

Casey Emberton is conducting the audit of Jackson Inc. as of December 31, 2020. At the beginning of the evidence gathering, Emberton becomes aware that one of Jackson's major customers (Perry) has been experiencing significant financial difficulties since November 2020 and there is doubt about their continued survival. Perry normally accounts for 5 percent of Jackson's net sales. After performing the necessary procedures, Emberton believes that $2.8 million of Perry's receivable balance will ultimately become uncollectible. Emberton further believes this amount is material to Jackson's financial condition and results of operations.Describe the most appropriate course of action that the auditors should take - What should they require of the client?).

AJ Kumar is completing the December 31, 2020, audit of Kiwi Company. As part of the final procedures, Kumar has requested representations from Kiwi's management regarding their assertion as to the fairness of the financial statements and other important matters addressed by professional standards. Because Kiwi's management is attending an analyst briefing in the upcoming week, Kumar receives these signed representations dated February 6, 2021. Kumar has a few remaining items to complete, does so, and dates the auditor's report February 9, 2021.Describe the most appropriate course of action that the auditors should take.