CA ANZ has lodged a submission jointly with the ACCA on the IAASB’s proposed amendments to its draft auditing standard for less complex entities (ISA for LCEs) to include audits of group financial statements.

While we commend the IAASB for responding to the feedback it received on the exposure draft of proposed ISA for LCEs that group audits should be included within the scope of the standard, we have concerns that the limitations on the use of component auditors will exclude too many groups from being able to use ISA for LCE which may hamper the adoption of the standard by practitioners.