The financial year of Jet Ltd ended on 30 June 2020. Your auditor's report was signed on 25 August and the financial statements were issued on 10 September.

Listed below are events that occurred or were discovered after the end of the financial year.

Assume that each has a material effect on the financial statements.

1. 1 August A lawsuit was filed against Jet Ltd for damages that allegedly occurred before 30 June. In the opinion of Hadrian's lawyers, there is a danger of a significant loss.

2. 15 August You discovered that MacTavish, a debtor of Jet Ltd went bankrupt on 10 August. The most recent sale had taken place on 25 May and no transactions had occurred since that date.

3. 1 September You discovered that a legal action commenced against Jet Ltd in relation to a faulty product sold in May 2020.

4. 15 September A fire burnt down one of Hadrian's warehouses, resulting in a loss of 30% of the inventory that was on hand at that date.

Required

(a)Indicate your responsibilities as an auditor for each of the above events.

(b)Indicate the type of disclosure (if any) you would recommend in relation to each of the four events. Consider whether the event is an adjusting or no-adjusting event.