A Type I subsequent event usually requires
A) An adjustment to the financial statements.
B) No adjustment to the financial statements.
C) Withdrawal from the engagement.
D) No action.

Question

Quizplus · Accepted Answer

A Type I subsequent event is an event that provides additional evidence about conditions that existed at the date of the financial statements, and the information should be reflected in the financial statements. Therefore, an adjustment to the financial statements would be necessary.

A Type I Subsequent Event Usually Requires