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ISA for LCE: FAQs
- 08 December 2023
- Accounting
- South African Accounting Academy
This document contains answers to the following 10 FAQs:
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What is the ISA for LCE?
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Why is the ISA for LCE needed?
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How does the ISA for LCE help auditors who perform audit engagements for less complex entities?
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Does using the ISA for LCE change the quality of the audit or mean less work is needed for an audit?
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What level of assurance is provided under the ISA for LCE?
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When can the ISA for LCE be used?
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Why should my jurisdiction adopt ISA for LCE?
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How will the standard be maintained?
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What implementation support will the IAASB provide?
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When does the ISA for LCE come into effect?
The ISA for LCE is a standalone global auditing standard designed specifically for smaller and less complex businesses and organizations. Built on the foundation of the International Standards on Auditing, audits performed using this standard provide the same level of assurance for eligible audits: reasonable assurance.
The standard is effective for audits beginning on or after 15 December 2025 for jurisdictions that adopt or permit its use.
Refer to our Technical Alert of 7 December 2023
Click here to download the FAQ document:
Relevance to Auditors, Independent Reviewers & Accountants:
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As an auditor and independent reviewer, you need to comply with International Standards on Auditing and other Assurance Services. Thus you need knowledge of newly revised standards that are approved and when they become effective.
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Failure to adhere to ISAs may be interpreted as negligence and you could be held liable.
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As a practitioner, you should be aware of the latest publications that have been issued by regulators, e.g. the IAASB.
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The new ISA for LCE makes it easier to navigate for those practitioners who support smaller and less complex businesses and types of engagements.
Relevance to Your Clients:
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None