Examples of Type I events are
A)a customer with a material accounts receivable balance goes bankrupt between the balance sheet date and the date of the audit report
B)the purchase of a new business between the balance sheet date and the date of the audit report
C)the loss of a warehouse as a result of a fire with a material amount of the loss not reimbursed by insurance between the balance sheet date and the date of the audit report
D)sale of a bond between the balance sheet date and the date of the audit report
E)settlement of a legal case between the balance sheet date and the date of the audit report
F)both A and C
G)both A and E
H)both D and E

Question

Quizplus · Accepted Answer

Type I events provide additional evidence about conditions that existed at the balance sheet date and affect the estimates inherent in the process of preparing financial statements. Both A and E are examples of such events.

Examples of Type I Events Are