Given the following four subsequent events (unrelated) for the December 31, 2019 year-end:

1. On January 15, 2020, a major customer declared bankruptcy.
2. On January 25, 2020 a fire destroyed a major suppliers building that warehouses inventory . 
3. On January 4^, 2020, an investment analyst downgraded the stock of the auditee.

The audit report date is February 15, 2020.

Required:

State clearly the type of subsequent event (Type I or Type II), if any, and the required impact on the financial statements.

Answer rating: 100% (QA)

1 Major client opted for bankruptcy The organization has not given fiscal reports for the year On th... View the full answer