Given the following three subsequent events (unrelated) for the December 31, 2018 year-end:

i.On January 15, 2019, a large commercial client with who the auditee had a material mortgage receivable balance went into receivership. (3 marks)

ii.On January 25 2019, management issued new bonds to finance a large investment in new property plant and equipment additions. (3 marks)

iii.On January 14, 2019, the annual sales plan was adjusted to reflect more realistic projections.

The audit report date is February 15, 2019.

Required:

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