An Example of a Type I Subsequent Event Is

question 66

Multiple Choice

An example of a Type I subsequent event is:

• A)a tornado that destroys an entity's factory after the balance sheet date.
• B)an event after the balance sheet date that confirms the auditor's belief (documented prior to the end of the entity's fiscal year)that a large portion of the entity's inventory is obsolete.
• C)notification of an IRS audit after the balance sheet date.
• D)the entity's Board of Directors unexpectedly resigns after the balance sheet date.

---

Definitions:

Standard Deviation

A statistical measurement that shows how much variation or dispersion exists from the average (mean), indicating how spread out the values in a data set are.

Mean

The arithmetic average of a set of numbers, calculated by adding up all the values and then dividing by the count of numbers.

Grade Equivalent

A measure indicating the school grade level of students to whom a test taker's performance is most similar.

Achievement Test

A type of ability test that measures what one has learned. Types of achievement tests include survey battery tests, diagnostic tests, and readiness tests.