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Oak wholly owns a material subsidiary, Birch. Birch has a material 30% interest in Willow. Oak also owns 40% of Beech, which is
material to Oak. Birch is an IESBA Public Interest Entity audit client.
Which of the following would be restricted entities?
Oak, Birch, and Willow
Birch and Willow
Oak, Birch, Willow and Beech
Birch, Willow and Beech
Confirm

Sagot :

anthougo

According to IESBA Public Interest Entity audit client rules, the restricted entities are D. Birch, Willow, and Beech.

What is an IESBA Public Interest Entity audit client?

According to the IESBA Public Interest Entity audit client guidelines, the restricted entities included Birch, Willow, and Beech.

The restricted entities have income that exceeds 10% of the consolidated incomes of the auditing firm, and they are legally related entities.

Data of Ownership Interests:

Oak in Birch = 100%

Birch in Williow = 30%

Oak in Beech = 40%

Thus, the restricted entities, according to IESBA Public Interest Entity audit client rules, are D. Birch, Willow, and Beech.

Learn more about relationships with audit clients at bhttps://brainly.com/question/14528555

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