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Ain, Aqilah & Co is the auditor of Bunga Lestari Berhad (BLB) for the year ended 31 December 2019

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Ain, Aqilah & Co is the auditor of Bunga Lestari Berhad (BLB) for the year ended 31 December 2019. The audit fieldwork was completed on 4 March 2020. The audited financial statements and signed audit report were issued and submitted to Securities Commission on 9 March 2020. The following unrelated subsequent events were found during the audit: 1. As at 28 January 2020 meeting, the board of directors decided to dispose one of its subsidiaries due to significant losses incurred for four consecutive years. 2. On 8 February 2020, you discovered about a fire incident which had destroyed one of BLB manufacturing plants on 13 November 2019. 3. The auditor has discovered an uninsured lawsuit against BLB on 15 February 2020. The lawsuit had originated in April 2019. In the opinion of legal counsel there is a possibility of significant loss towards BLB bottom line, but the amount is unknown. 4. Large account receivable balance from one of BLB's major customers, Nara Sdn Bhd was considered fully collectible as at 31 December 2019. However, Nara Sdn Bhd was declared bankrupt on 31 March 2020. Required: In each of the situations above, state from the following the appropriate action and justify your answers: 111 i Adjust the 31 December 2019, financial statements. ii. Disclose the information in notes to the accounts in the 31 December 2019, financial statements. iii. Request the client revise and reissue the 31 December 2019, financial statements. The revision should involve an adjustment to the 31 December 2019, financial statements. No action is required. 1V.