This webinar updated attendees on planned changes to the International Auditing and Assurance Standards Board’s proposed standard for Audits of Less Complex Entities (ISA for LCE), including changes since the Exposure Draft and the forecasted project timeline, and provided an opportunity for participants to ask questions. The video of the webinar organized by IAASB, IFAC and the European Federation of Accountants and Auditors for SMEs (EFAA) is available here. The slides are available here.
Audits of Less Complex Entities Background
Smaller, less complex entities play a vital role in the world’s economy. In an increasingly complex world with evolving reporting needs, a need for a set of high-quality requirements tailored for the audits of less complex entities has emerged.
The IAASB’s Exposure Draft, Proposed International Standard on Auditing for Audits of Less Complex Entities (ISA for LCE), was open for public consultation until early 2022. Since then, the IAASB has evaluated feedback received and made further revisions to the draft ISA for LCEs, including to the authority, targeted areas of the proposed standard, and incorporated requirements for audits of group financial statements. The IAASB approved an exposure draft to incorporate groups audits at its December 2022 meeting.