Question $11$

Why is it important to correctly identify whether a business relationship will be with a subcontractor, independent contractors or an alliance? Select all that apply.

Each type of relationship has distinct independence requirements.

Alliances are generally not permitted with restricted entittie vec$()$ but subcontractor and third party resource relationships might the permitted for IESBA audit or assurance clients.

All three relationships are permitted with restricted entities, subject to materiality of the relationship.

The independence considerations are different for supplier$/$vendor relationships.