Which of the following statements is correct regarding a type 1 subsequent event?
A) They are events that do not result in changes to amounts in the financial statements.
B) They occur before the end of the client's financial year.
C) They may be of such significance as to require disclosure in the financial statements.
D) The financial statements are adjusted for any material changes in estimates from these types of events.

Question

Quizplus · Accepted Answer

Type 1 subsequent events provide additional evidence about conditions that existed at the balance sheet date and require adjustments to the financial statements.

Which of the Following Statements Is Correct Regarding a Type