There are two types of subsequent events (post-balance sheet events). A "type 1" event refers to additional evidence regarding a condition or account that already existed at the balance sheet date. Such evidence

A. usually require an adjustment of amounts recorded in a prior fiscal period.

B. is considered to be low quality evidence.

C. may require an adjustment of amounts recorded as of the balance sheet date.

D. does not meet the rigor of other procedures performed by the auditor.