Assume That a Major Customer of the Company That You

question 124

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

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Definitions:

Management By Exception

A management strategy where only significant deviations from set standards, goals, or performances are brought to attention, allowing for focus on exceptional cases.

Laissez Faire Leadership

A leadership style in which the leader takes a hands-off approach, allowing members of the group to make their own decisions.

Intuitive Appeal

The natural attractiveness or persuasiveness of an idea or concept that feels right or acceptable without extensive rationale or logic.

Laissez Faire Leadership

A leadership style where leaders take a hands-off approach, allowing team members to make decisions and solve problems independently.