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NEW! ISA for LCE issued!
- 07 December 2023
- Auditing and Assurance
- South African Accounting Academy
The ISA for LCE is a standalone global auditing standard designed specifically for smaller and less complex businesses.
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It is the standalone standard that is proportionate & tailored to the specific needs of an audit of less complex entities, which makes it easier to navigate for those practitioners who support these types of engagements.
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It provides the same level of assurance as an audit performed under the ISAs: reasonable assurance.
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It will help maintain confidence in financial reporting and promote the consistent application of auditing standards to LCEs, reducing jurisdictional divergence risk by driving consistency and comparability globally.
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It recognizes the importance of smaller businesses and their specific audit needs.
Built on the foundation of the International Standards on Auditing (ISAs), 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.
Released alongside the ISA for LCE is a Basis for Conclusions, which details feedback from the public consultation period and can be accessed at https://ifacweb.blob.core.windows.net/publicfiles/2023-12/IAASB-Audit-Less-Complex-Entities-LCE-Basis-Conclusions.pdf
Additional materials to help jurisdictions navigate adoption will be issued in 2024, including supplementary guidance, a fact sheet on adoption, and a first-time implementation guide.
Click here to download the brand new Standard:
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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This 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