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belief (documented prior to the end of the entity's fiscal year) that a large portion of the entity's inventory is obsolete.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