Michael is auditing the financial statements of the Diannah Corporation as of and for the period ended September 30, 1999. Michael plans to complete field work and sign the auditor's report on November 15, 1999. Michael's audit work is designed primarily to obtain evidence that will provide a reasonable degree of assurance that the Diannah Corporation's September 30, 1999, financial statements present fairly the financial position, results of operations, and cash flows in accordance with generally accepted accounting principles. Michael is concerned, however, about events and transactions of the Diannah Corporation that occur after September 30, 1999, since he does not have the same degree of assurance for these events as for those that occurred in the period ending September 30, 1999.

Required: 

Define what is commonly referred to in auditing as a "subsequent event" and describe the two general types of subsequent events that require consideration by the management of Diannah Corporation and evaluation by Michael.