At its meeting on March 8-9, 2021, the AASB provided input to the IAASB members from Canada on the IAASB’s project to develop a separate standard for audits of LCEs. Key issues discussed included:

1. the conventions used in drafting the separate standard;
2. the proposed description of the characteristics of an LCE to consider when deciding when to apply the separate standard;
3. the proposed approach to maintaining alignment of the separate standard with the ISAs; and
4. the additional matters that the project should explore, including how to transition from the separate standard to the ISAs when an entity no longer qualifies as an LCE.

The AASB also discussed how to proceed in Canada in relation to the IAASB’s issuance of an exposure draft of a separate standard for audits of LCEs. The AASB will continue its discussion on the way forward in Canada at its May meeting.

Review the Executive Summary on the AASB's Web site.