Your CPA firm was engaged to audit the financial statements for a non-profit (and not publicly held) medium sized health care provider that operates three hospitals and several clinics in a large U.S. metropolitan area. The company has a December 31 year end The audit fieldwork was completed on February 12, and the reprt is scheduled to be released on February 28. On February 21, you read a news article indicating that the state is investigating the hospital for allegedly overbilling the state's Medicaid programs for emergency and urgent care clinical The state alleges that the hospital inflated prices for Medicaid patients and also billed for scans, lab tests, and other procedures that were never provided to the patienw a practice known as upcoding_ The news story also indicated that the hospital's Chief Financial Officer has resigned, although the story was said that the resignation was unrelated to the Medicaid investigation. Required. Assume that Medicaid patients represent approximately 20% of the health care provider's patient base. Using this background informatm respond to each of the points below and provide support IVouId this be considered a subsequent event? If so: would it be classified as a Type or a Type Il event? IVouId this be considered to be a subsequently discovered fact? Does the auditor have any responsibility With regard to this news development? How will this affect the audit  what will you do: if anything, as the auditor? Prepare a memo to be included in the audit working papers to document your evaluation and your recommendation. Be specific and identify accounts that you will address and changes to audit procedures, if any: that you Will recommend