At its financial year end HX has an outstanding legal action against it by a large multinational entity.

At its financial year end HX has an outstanding legal action against it by a large

  multinational entity. It is highly probable that the legal action will be successful and HX

  will have to pay substantial damages. HX has refused to provide for these damages. 

  In the opinion of the auditor, failure to make this provision means that the financial

  statements are seriously misleading.

What type of audit report will be issued in this situation?