Jason Hirsch, engagement partner for the December 31, 1999 Flowmeter, Inc. financial statement audit, is aware that events and transactions which took place after December 31, 1999 (but before he issues his report dated February 28, 2000) may affect the company's financial statements. The following material events or transactions have come to Hirsch's attention:

a. On January 3, 2000, Flowmeter, Inc. received a shipment of raw materials from Canada. The materials had been ordered in October 1999, and shipped FOB shipping point in November 1999.

b. On January 15, 2000, the company settled and paid a personal injury claim of a former employee as the result of an accident that occurred in March 1995. The company had not previously recorded a liability for the claim.

c. On January 25, 2000, the company agreed to purchase for cash the outstanding stock of Porter Electrical Co. The acquisition is likely to double the sales volume of Flowmeter, Inc.

d. On February 1, 2000, a plant owned by Flowmeter, Inc. was damaged by a flood, resulting in an uninsured loss of inventory.

e. On February 5, 2000, Flowmeter, Inc. issued and sold to the general public $2,000,000 in convertible bonds.

Required: 

For each of the above events or transactions, discuss audit procedures that should have brought the item to the auditor's attention, and the form of (and reasons for) disclosure in the financial statements.