Examples of Type II 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 the loss 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 B
G)both B and D
H)both C and E

Question

Quizplus · Accepted Answer

Type II events are those that provide evidence about conditions that did not exist at the balance sheet date but arose subsequently. The purchase of a new business and the sale of a bond are examples of such events.

Examples of Type II Events Are