An Example of a Type I Subsequent Event Is

Multiple Choice

An example of a Type I subsequent event is

A) A tornado that destroys a client's factory after the balance sheet date.
B) An event after the balance sheet date that confirms the auditor's belief (documented prior to the end of the client's fiscal year) that a large portion of the client's inventory is obsolete.
C) Notification of an IRS audit after the balance sheet date.
D) The client's Board of Directors unexpectedly resigns after the balance sheet date.