Assume That a Major Customer of the Company That You

Multiple Choice

Assume that a major customer of the company that you are auditing files for bankruptcy during the subsequent period because of a deteriorating financial condition.Neither you nor the client becomes aware of the event until the bankruptcy filing is reported.What type of subsequent event would this be?

A) Type I subsequent event
B) Type II subsequent event
C) Neither Type I or Type II
D) Both Type I and Type II