The IAASB issued a discussion paper which explores possible options to address the challenges in applying the ISAs to the audits of less complex entities (LCEs). CA ANZ and ACCA prepared a joint submission which was lodged on 12 September.
We connected and received feedback from a wide range of our members, including participating in a number of face-to-face and web-based sessions with various member groups and obtaining feedback from members who perform LCE audits.
The key points of our submission:
- We support the IAASB's commitment to addressing these issues as it is a key issue for the profession and the value of audit.
- We support the use of a definition of "Less Complex Entity" that focuses on qualitative characteristics.
- We believe that there are arguments for and against all three of the options presented as possible options to address the issue and that the IAASB needs to further explore each option after it receives the feedback on the discussion paper.
We support the IAASB addressing the challenges of LCE audits but believe further exploration is needed before a final solution can be developed.
Discussion Paper, Audits of Less Complex Entities
Read more on the IAASB’s discussion paper and project.Read More