Consultation to include groups in proposed auditing standard for LCEs


CPA Ireland has welcomed the proposal by the IAASB to include certain group companies in its proposal to issue an auditing standard for less complex entities (LCEs).

In its response to the Proposed Part 10, Audits of Group Financial Statements of the Proposed International Standard on Auditing for Audits of Financial Statements of Less Complex Entities, CPA Ireland welcomed the proposed approach for certain groups.

The original proposed auditing standard for Less Complex Entities excluded group companies, regardless of their size and complexity.

The new proposed approach provides for the inclusion of certain groups, with a prohibition on the use of the proposed ISA for LCEs for group audits where component auditors are involved, other than in limited circumstances where physical presence is required.

CPA Ireland continues to support the development of an auditing standard specifically for LCEs and looks forward to working to support the adoption of the standard globally and for use in the Irish market.

To keep up to date with the LCE project please click here.