You are the auditor of BBB. On 22 January 2021, you were told that a thunderstorm has caused severe damage to one of BBB's stores. The thunderstorm caused water damage to most of the inventory in the store and the losses were estimated to be $40 million.

Additional information:

• Annual balance date: 31 December 2020
• Completion of audit fieldwork: 2 February 2021
• Signing of audit report: 8 February 2021
• Publication of financial statements: 24 March 2021

Required:

State what the auditor will either do or request Management to do. Justify your response. (2 Marks)