For each subsequent event:

• Indicate what action you believe you, as the auditor, should take given the circumstance as described.
• Explain why you feel this is the correct action to take. Support your explanation with reference to the auditing standards as appropriate

January 27, 2020: During the fiscal year, the company loaned $15,000 to Michael Fitzpatrick, the President and Chief Executive Officer. Subsequent to the end of the year, you read in the minutes of the Board of Director's meeting that the Board agreed to forgive this loan effective this date.