Your instructor will provide you with a list of events that took place after the end of the fiscal year, but prior to the date of the audit report. Assume each event is independent of the others. 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.

Event 1: January 1, 2020 A landowner who operates a farm through which the pipeline runs telephoned ColAlta's president to complain that his cows are ill due to the pipeline, and is threatening to sue ColAlta

Event 2: January 14, 2020 As you were completing the final summary of your working papers for accrued liabilities, one of the accounts payable clerks informed you that she had discovered the December invoice for office utilities had not been entered into accounts payable, in the amount of $687

Event 3: January 6, 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 Directors meeting that the Board agreed to forgive this loan effective this date.

Event 4 January 17, 2020 While making photocopies of some documents, you overheard two employees discussing their suspicions that an accounts receivable clerk is stealing money from the company.