You are the auditor of WWW. On 3 January 2021, you were told that one of WWW's competitors has started a lawsuit against WWW. The competitor alleged that WWW has engaged in misleading advertising. On 3 February 2021, WWW successfully negotiated a settlement with the competitor whereby WWW would cancel the said advertisement and pay $2 million in compensation in return for the competitor to drop the lawsuit.

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)