You are the audit manager of Victor & Co., and you are currently auditing the financial statements

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Question:

You are the audit manager of Victor & Co., and you are currently auditing the financial statements of Winner Bhd., for the year ended 31 July 2021. The audit work was completed on 14 September 2021 and the audit report is due to be signed on 20 September 2021.
However, the following events have been brought to your attention:

(i) On 30 August 2021, the auditor has discovered that one of the debtors of Winner Bhd., had gone bankrupt in early August 2021. The last sales transaction with this debtor was on 13 March 2021 and the total outstanding amount from this debtor was RM300,000 as of 31 July 2021. (3 marks)

(ii) On 30 April 2021, an employee of Winner Bhd. had filed a lawsuit against the company for wrongful dismissal. However, the company's legal team is still in negotiation with the employee and the amount of potential loss is still unknown as of September 2021. (3 marks)

(iii) On 6 August 2021, Winner Bhd. had issued and sold RM2 million worth of convertible debentures to the public. (4 marks)

Required:
For each of the events listed above, state and justify the action that should be taken by the auditor.