Doc Martin, the owner of Doc Martin Inc., is reviewing the audited financial statements with you, the auditor. He is confused about the "subsequent events" note in the financial statement, and whether an adjusting entry is required for the year just completed, a note only is needed, or neither an adjustment or note is required. Required: Briefly explain to Doc what the criteria are as to whether adjusting entries are required, note disclosure only is needed, or neither an adjustment or a note is required. A B