You are the auditor of VVV. On 4 February 2021, you were told that one of VVV's suppliers has cancelled a lawsuit filed against VVV for outstanding unpaid debts. The supplier started the lawsuit in March 2020. In return for the cancellation of the lawsuit, VVV agreed to pay the supplier $20 million within 90 days.

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)