The following questions relate to the auditor's responsibility with respect to subsequent events. Select the best response. 

a. "Subsequent events" for reporting purposes are defined as events which occur subsequent to the 

1. Balance sheet date.

2. Date of the auditor's report.

3. Balance sheet date but prior to the date of the auditor's report.

4 Date of the auditor's report and concern contingencies which are not reflected in the financial statements.

b. Which event that occurred after the end of the fiscal year under audit but prior to issuance of the auditor's report would not require disclosure in the financial statements?

1. Sale of a bond or capital stock issue.

2. Loss of plant or inventories as a result of fire or flood.

3. A major drop in the quoted market price of the stock of the corporation.

4. Settlement of litigation when the event giving rise to the claim took place after the balance sheet date.

c. With respect to issuance of an audit report which is dual dated for a subsequent event occurring after the completion of field work but before issuance of the auditor's report, the auditor's responsibility for events occurring subsequent to the completion of field work is 1. Extended to include all events occurring until the date of the last subsequent event referred to.

2. Limited to the specific event referred to.

3. Limited to all events occurring through the date of issuance of the report.

4. Extended to include all events occurring through the date of submission of the report to the client.