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

Type I subsequent event

Explanation:

The reason is that there are two types of subsequent events which includes a recognizable event and a non-recognizable event. In the Recognizable event which is also known as type 1 subsequent events is the event that has occurred at the financial statement date and is concluded after the year end. So in this case, the event had occured at the financial statement date which the auditor and the company didn't knew about and has been concluded in the subsequent period.

being suspected of supplying drugs means you are much more likely to be charged. the amount of drugs found on you, and whether you have a criminal record, will be taken into account when a punishment is being decided.

decisions to prosecute are taken by the public prosecution service. the maximum sentences for intent to supply drugs are: