Audits of Less Complex Entities: Guidance published

19 October 2021
Auditing and Assurance
South African Accounting Academy

The publication provides further guidance on modifications and other changes to the auditor’s report when using the proposed standard, and is to be read together with the [draft] ISA for LCE

This Supplement provides guidance on:

Various elements of the auditor’s report (Part II).
Modifications to the opinion in the auditor’s report (Part III).
Content of the Basis for Opinion section when modifications are made to the opinion in the auditor’s

report (Part IV).

The use of Emphasis of Matter paragraphs within the auditor’s report (Part V).
The use of Other Matter paragraphs within the auditor’s report (Part VI).
Reporting on Other Information (Part VII).
Reporting on a material uncertainty related to going concern (Part VIII).

The Appendix to this Supplement includes five illustrative auditor’s reports including:

Illustrative Report 1−A qualified opinion, also with an Emphasis of Matter paragraph and reporting on

other legal and regulatory requirements.
Illustrative Report 2−An adverse opinion.
Illustrative Report 3−A disclaimer of opinion with an Other Matter paragraph.
Illustrative Report 4−An unmodified opinion with Other Information.
Illustrative Report 5−An unmodified opinion with a material uncertainty related to going concern.

These illustrative reports set out examples that are not contained within the [draft] ISA for LCE

Mapping documents - ISAs to proposed ISA for LCE

This publication aims to help users navigate between existing, equivalent ISAs and the requirements in the newly proposed ISA for LCEs. These 2 “mapping” documents illustrate how the requirements from the International Standards on Auditing (ISAs) have, or have not, been incorporated within the proposed new International Standard on Auditing for Audits of Less Complex Entities (ISA for LCE).

Click here to download the Guidance and Mapping documents:

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