Small and Tall, CPAs completed the December 31, 2010 audit of Big Company on February 10, 2011.

Small and Tall, CPAs completed the December 31, 2010 audit of Big Company on February 10, 2011. After the audit report release date, it came to the attention of Small and Tall, CPAs, that an outstanding lawsuit against Big Company was settled for materially more than recorded in the December 31, 2010 financial statements. The amount recorded in the financial statements represented the best estimate of management and the company's attorneys at the time the audit was completed. Based on this new information, Small and Tall, CPAs should