Question: You are auditing Musakun, a company that manufactures the protein bars. They have a manufacturing facility in Granville that contains specialised equipment to make protein bars. This equipment was imported from Japan.The company has a 30 June 2022 year end, and you will be signing the audit report on September 15. The financial and annual report will be released to shareholders on September 17.On July 15, the specialised protein making machine was damaged when an employee tried to open a side panel. The client has insurance and a new machine has been ordered, but due to shipping delays, it is not expected to arrive in Australia until December 15, 2022. The client will not have a going concern problem - they have plenty of cash in reserve -but it will affect future sales. Which of the following actions should the audit firm take in regards to this client?
o Request the client make an adjustment and make a disclosure about inventory
o Request the client make an adjustment to property, plant and equipment
o Request the client make a note disclosure about property, plant and equipment
o Request the client make an adjustment and make a note disclosure about property plant and equipment
o Do nothing