An example of a Type I subsequent event is:

Multiple Choice

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belief $($documented prior to the end of the entity's fiscal year$)$ that a large portion of the entity's inventory is obsolete.

notification of a tax audit by CRA after the balance sheet date.

a tornado that destroys an entity's factory after the balance sheet date.

the entity's Board of Directors unexpectedly resigns after the balance sheet date.