Your client is Queenscorp Ltd, a diversified business operating throughout Australia. Year-end was 30 June 2015, the auditor's report was signed on 31 July 2015 and the financial statements were mailed to shareholders on 14 August 2015.

During your subsequent events review, you noted the following independent and material items.

1. Queenscorp has been involved in a legal dispute with a competitor for a number of years. The dispute relates to alleged breaches of copyright by Queenscorp. On 27 July, you discovered that Queenscorp had settled the legal action out of court on terms more favourable than expected.

2. As for (1) above, except that the legal action was settled on 5 August.

3. On 10 July, one of Queenscorp's major product lines developed a fault that rendered the product unusable. Queenscorp became aware of the fault on 30 July. Although the fault posed no safety risks to consumers, Queenscorp decided to launch a full product recall on the following day.

4. On 30 July 2015, the Bureau of Meteorology issued a cyclone warning for parts of Far North Queensland. Queenscorp has a large sugar cane plantation in this area. On 2 August, the cyclone hit, wiping out about 90% of the crop.

5. Queenscorp has invested significant funds in developing a new type of cholesterol-reducing margarine. On 7 July, Queenscorp applied for a patent for the margarine, only to discover that a competitor had lodged a similar application on 28 June. The granting of Queenscorp's application is now in doubt.

6. Queenscorp's bank loan is conditional upon certain ratios being maintained at all times. On 20 August, you discovered that one of the ratios was breached for a 24-hour period on 18 August.

7. Queenscorp has large landholdings on the outskirts of Sydney. On 20 July, Queenscorp received preliminary notice from the federal government informing the company that, should the new Sydney airport proceed, about 30% of this land will be forcibly acquired. Queenscorp has no legal right to challenge the acquisition.

8. In early June, one of Queenscorp's largest debtors informed Queenscorp that it was experiencing serious financial difficulties. On 5 July, Queenscorp was informed that the debtor had gone into receivership. Preliminary reports suggest Queenscorp will recover only 10 cents in the dollar of the outstanding debt.

Required

a. Outline the key additional audit procedures you should have performed in relation to each of the above events.

b. What action should you have recommended to management in relation to each of the above events?