You are a senior auditor at R&W Associates. You are currently completing the 30 June 2021 financial year audit for one of your clients Beximco Limited (Beximco). Following time schedule are being set by the engagement partner for this audit:

30 June 2021: Beximco Limiteds financial year end.

10 September 2021: Completion of audit field work.

25 September 2021: Signing of the auditors report.

30 September 2021: Distribution of the financial statements.

The following material events are brought to your attention after 30 June 2021:

1. Beximco disposed of all shares of one of its major subsidiaries on 20 September2021.

2. On 27 September 2021, you discovered that a legal action commenced against Beximco in relation to a faulty product sold in mid-May 2021. The company lawyers said that it is too early to assess the financial impact of this legal action.

3. Alpha limited, one of Beximcos main customers with a material debt outstanding at year end, filed a bankruptcy petition on 22 September 2021.

Required:

a. Explain how each of the above-mentioned events should be treated in the financial statements for the year ended 30 June 2021.

b. Outline your responsibility in relation to performing additional procedures. Justify your answer with reference to the applicable auditing standard.