You are making an annual audit for the purpose of rendering an opinion on financial statements for use in an annual report to stockholders. Answer the following questions concerning events subsequent to the date of the financial statements:

1. What auditing procedures should normally be followed in order to obtain knowl- edge of subsequent events?

2. What is the period with which the auditor is normally concerned with regard to post-balance-sheet events?

3. Give five different examples of events or transactions which might occur in the subsequent period.

4. What is the auditor's general responsibility, if any, for reporting such events or transactions?

5. In your report, how would you deal with each of the examples you listed in 3 above?