You, CPA, are the auditor of Sticks and Stones Ltd. (SSL), whose year end is December 31, Year 1. At year end SSL has accrued a provision of $100,000 related to an ongoing lawsuit and has included a note disclosure. Materiality for the audit was determined to be $22,000. It is now March 2, Year 2 and the audit report has not yet been signed. You receive an email from the controller of SSL informing you that there has been a settlement with an attachment showing damages payable of $127,000. What would be the effect of this event on your audit?