Certified Internal Auditor (CIA) Part 3: Business Knowledge for Internal Auditing — Question 100

Which of the following represents a basis for consolidation under the International Financial Reporting Standards?

Answer options

• A. Variable entity approach
• B. Control ownership
• C. Risk and reward
• D. Voting interest

Correct answer: D

Explanation

The correct answer, D. Voting interest, is the basis for determining control under the International Financial Reporting Standards, which is crucial for consolidation. The other options—variable entity approach, control ownership, and risk and reward—are factors that may influence consolidation but do not serve as the primary basis for it.