8. An auditor should be aware of subsequent event that provide evidence concerning conditions that did not exist at year end but arose after year end. These events may be important to the auditor because they may:

a. Have been recorded based on preliminary accounting estimates.

b. Require adjustments to the financial statements as of the year end.

c. Have been recorded based on year-end tests for asset obsolescence.

d. Require disclosure to keep the financial statement from being misleading.