In July last year, the IAASB released its consultation on the
Proposed International Standard on Auditing (ISA) for Audits of Financial Statements of Less Complex Entities (LCE). Since the consultation period ended in January 2022, the IAASB has analysed the letters received from 145 respondents, including CPA Ireland, and the results of the survey, and undertaken extensive outreach, which has been critical in formulating the IAASB’s thinking about the way forward. Among the outreach activities was the LCE conference in Paris in May 2022, and the
Key Takeaways from the conference were published on the IAASB website.
In its June 2022 meeting the IAASB discussed key feedback received and determined a path forward on several key issues, including:
- Continuation of the project: the IAASB will continue its project to develop a separate standard for LCEs.
- The authority of the standard: the IAASB will explore the description of what an “LCE” is (for the purpose of the standard) in order to provide a common understanding on which entities the standard is applicable for. This clarification will also support the IAASB’s deliberations on further revisions.
- Less complex group audits: the IAASB will explore the inclusion of procedures for group audits in the scope of the standard.
The IAASB will continue to analyse responses to the exposure draft and commence drafting to the revised standard in priority areas. Follow the project on the
LCE project web page.