An example of an event occurring in the period of the auditor's field work subsequent to the end of the year being audited that normally will not require disclosure in the financial statements or auditor's report is: 1. Serious damage to the company's plant from a widespread flood. 2. Issuance of capital stock with restrictive covenants. 3. Settlement of a large liability for considerably less than the amount recorded. 4. Decreasing sales volume resulting from a general business recession. O 1 3 O4 2.