You are the senior in charge of the audit of JJJ (pty) Ltd, a company which operates a number of supermarkets. The financial statements reflect a pre-tax of nearly P14 million for the year. You have completed most of the audit work and are assisting the audit manager with the final evaluation so that the appropriate audit report can be drawn up. Your firm's policy is to consider contingent liability disclosure as part of the final evaluation and he has asked you to deal with Note 15 which is shown below: Note 15- Contingent liability the company has been sued by two customers who suffered serious injuries whilst shopping in one of the company's stores. A rack containing tinned goods collapsed on one of the customers resulting in severe spinal injury. The second customer was permanently blinded on one eye when a piece of glass entered her eye, from a bottle broken in the collapse of a rack. The total amount for which is being sued is P5 million. It is unclear when the matter will be settled or what amount may be awarded as damages. For various reasons it is uncertain whether any damages awarded in this case will be covered wholly or partially by the company's insurance if the complainants are successful. Required: (i) Discuss the assertions which relate to the contingent liability above. (ii) Outline what information should be provided when disclosing a contingent liability (iii) Indicate whether in this case it would not be better to make a provision for P5 million in the financial statements at year end in view of the accident happened prior to year end. Justify your answer. (iv) Describe the substantive audit procedures you would conduct in respect of the assertions relating to the disclosure of this contingent liability. (v) Comment on whether this particular matter could not simply be ignored for financial reporting purposes