24-29 (Objective 24-4) The following unrelated events occurred after the balance sheet date but before the audit report was prepared: 1. The granting of a retroactive pay increase 2. Declaration of a stock dividend 3. Sale of a fixed asset at a substantial profit 4. Determination by the federal government of additional income tax due for a prior year 5. Filing of an antitrust suit by the federal government a. Explain how each of the items might have come to the auditor's attention. b. Discuss the auditor's responsibility to recognize each of these in connection with the report.* 24-30 (Objectives 24-4, 24-8) The field work for the June 30, 2011, audit of Tracy Brewing Company was finished August 19,2011, and the completed financial statements, accompanied by the signed audit reports, were mailed September 6, 2011. In each of the highly material independent events (a through i), state the appropriate action ( 1 through 4 ) for the situation and justify your response. The alternative actions are as follows: 1. Adjust the June 30,2011 , financial statements. 2. Disclose the information in a footnote in the June 30,2011 , financial statements. 3. Request the client to recall the June 30,2011 , statements for revision. 4. No action is required