Under GAAP, contingent liabilities have to be accrued on a company's balance sheet if they are "probable and "can be reasonably estimated." During the course of performing a company's annual audit, you discovered facts that make it highly likely that a pending lawsuit against the company will be successful. You estimate that the company will lose $30 million. The client is attempting to settle this case for a small amount. They also have told you that their adversary has not discovered this vital fact and the company "wants to keep it that way."
What should you do?