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:

Heart Condition

Any of a variety of disorders that affect the heart's ability to function properly, including coronary artery disease, arrhythmias, and congenital heart defects.

Blood Pressure

The force exerted by circulating blood on the walls of the body's arteries, an essential indicator of cardiovascular health.

Endocrine Glands

Glands that secrete hormones directly into the bloodstream, regulating various body functions.

Ducts

Tubes, channels, or passages in the body or in a machine that convey fluid or air from one location to another.