108 A key supplier of Humphries Co is suing them for breach of contract. The lawsuit was filed prior to the year end, and the sum claimed by them is $1 million. This has been disclosed as a contingent liability in the notes to the financial statements. Correspondence has just arrived from the supplier indicating that they are willing to settle the case for a payment by Humphries Co of $0.6 million. It is likely that the company will agree to this. Which of the following options correctly summarises the impact on the auditor’s report if the financial statements are not revised in the light of this new information?