EFAA for SMEs – Position Statement International Standard on Auditing for Audits of Financial Statements of Less Complex Entities (ISA for LCE)

EFAA welcomes the introduction of the ISA for LCE, effective for audits beginning on or after 15 December 2025. This new standard provides reasonable assurance while simplifying requirements for audits of less complex entities. EFAA strongly supports its adoption because it: Offers a proportionate, risk-focused approach tailored to LCEs. Reduces unnecessary complexity and documentation burden. Improves audit quality and efficiency for SMPs. Maintains full reasonable assurance despite streamlined procedures. Helps SMPs deliver audits that are scalable, understandable, and cost-effective.