The following matters came to the attention of the auditors before the audit fieldwork was completed. Which one would require an adjustment to be made to the financial statements?

(a) A discussion by management to change the main operations of the company.

(b) A major lawsuit against the company, with proceedings commencing after the end of the financial year.

(c) The bankruptcy of a major customer of the client.

(d) The application for a government export grant.

Choose the best answer.