Your firm is the external auditor of Hard Rock Ltd, a large and diversified entity, to which the following timelines apply. . A balance date of 30 June 2017: Directors declaration and audit report to be signed on 28th July 2017 Financial report and audit report to be mailed to shareholders on 4 August 2017. Required: I For each of the following independent and material situations, select the appropriate action from the list below, and justify your responses: A. Adjust the 30th June 2017 financial report B. Disclose the information in a note at the 30 June 2017 financial report C. Request that the client recall the 30th June 2017 financial report for revision D. No action is required. Situation 1: On 15th June 2017, one of Hard Rock's major debtors (Beans Ltd) informed Hard Rock that it was experiencing serious financial difficulties. On 8th July 2017, Hard Rock was informed that the Beans Ltd has gone bankrupt. Action (2 marks) Justification (1 mark) I Situation 2: Hard Rock owns a large coffee plantation in far North Queensland. On 16th July 2017 the Bureau of Meteorology issued a cyclone warning for parts of far North Queensland. On 18th July 2017 the cyclone hit and wiped out 90% of the coffee plantation. Action (2 marks) Justification (1 mark) I Situation 3: On 30th of August 2017, Hard Rock Ltd settled a law suit with Max Brown Ltd for twice the liability accrued in the 30th June 2017 financial statement. Action (2 marks) Justification (1 mark)