Wednesday, February 15, 2023
The AUASB today released a Consultation Paper on the exposure of the IAASB’s Proposed Part 10, Audits of Group Financial Statements of the Proposed International Standard on Auditing for Audits of Financial Statements of Less Complex Entities (ISA for LCE Group Audits) and seeks public comment by 11 April 2023.
After hearing extensive stakeholder feedback, the IAASB is proposing revisions to the Authority of the Proposed LCE Standard, for the incorporation of audits of group financial statements, subject to additional qualitative criteria. Additionally, the IAASB is proposing a ‘bright line’ exclusion of group audits where component auditors are used. The IAASB recognises that the use of component auditors may not always be an indication of complexity, but that a ‘bright line’ determination of when it was appropriate to use this standard for group audits was requested by stakeholders. Since group audits was not exposed as part of the Proposed LCE Standard, this section on Group Audits is now being separately exposed by the IAASB and the AUASB.
The AUASB invites all stakeholders to comment on the Consultation Paper via the AUASB website.