Analyse and explain how the following situation would affect the audit report for the financial year ended on 31 December 2020. Cloth N Things Ltd is a large brick-and-mortar fashion retailer and it has been struggling in recent years customers increasingly rely on online shopping. COVID has also severely affected its business. The auditor experienced a number of difficulties during the audit, including significant disagreement over the value of the Cloth N Things brand name. The auditor suggested that the brand name was overstated by $3.1 million, a figure which is above the materiality of $3 million set for the audit. The senior management of the client company refused to impair the brand name account.