You are the auditor of Bloomberg Ltd. for the year ended 30 June 2018. While completing your audit and finalising your auditor's report, you discover that the company has incorrectly stated in the chairperson's review of operations that Bloomberg has complied with environmental guidelines regarding its carbon emissions. Non-compliance with these guidelines was investigated during the audit and it was noted (in a conversation with a junior manager) that Bloomberg's emissions were significantly above compliance standards. There is currently no financial implication for non-compliance, so no further action was taken. You believe, however, that the statement in the annual report will affect the perception of readers of the annual report regarding the company's entitlement to future environmental incentives. This information is likely to lead to a material adjustment of Bloomberg's share price.

Explain what action would you take in regard to the above situation? (3 marks)