Furthering the Debate on Applying the ISAs on Audits of Less Complex Entities (LCEs)

The International Auditing and Assurance Standards Board (IAASB) has published a Discussion Paper, Audits of Less Complex Entities: Exploring Possible Options to Address the Challenges in Applying the International Standards on Auditing (ISAs) which seeks to further understand the challenges of using the ISAs in audits of less complex entities—and views about possible actions to address these challenges.

In this Discussion Paper the IAASB recognizes the global call for action to address issues of complexity, length, understandability, scalability, and proportionality related to using the ISAs. Continuing the debate on these strategic issues, the Discussion Paper explores how the IAASB, and others, could further support auditors working in increasingly evolving environments.

Feedback on this document is requested to the AUASB by 31 August 2019 from all interested stakeholders.

Are the auditing standards becoming too complex for small entities? AUASB Survey

Audit practitioners globally are raising concerns about the growing level of complexity of the auditing standards and the difficulties in applying them to audits of small entities. The AUASB has released a short survey on Audits of Less Complex Entities (LCE) to obtain Australian Stakeholder’s feedback on this important topic.

Responses to the survey will help the AUASB better understand the issues and challenges associated with auditing LCEs, so that the views of our Australian stakeholders can be effectively represented in the early stages of this IAASB Project.

CAANZ Perspective Article

Future Options for Auditing Standards applicable to Audits of Less Complex Entities (LCEs)