Following lengthy consultations and outreach the International Auditing and Assurance Standards Board (IAASB) has finalised and published the International Standard on Auditing for Audits of Financial Statements of Less Complex Entities.
This new standard, known as the ISA for LCE, is a global auditing standard designed specifically for smaller and less complex businesses.
The ISA for LCE builds on foundation of the International Standards on Auditing (ISAs) and audits performed using this standard provide the same level of assurance for eligible audits: reasonable assurance.
The IAASB have also published their Basis for Conclusions, which details feedback from the public consultation, a high-level fact sheet, and a frequently asked questions document. Additional materials to help jurisdictions facilitate adoption will be issued in 2024,
Where it is adopted or permitted it is effective for audits beginning on or after December 15, 2025.
Chartered Accountants Ireland responded to both consultations on this standard. In January 2022 and May 2023.
We will update members on any local developments.
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