Audits of Less Complex Entities - IAASB

Date recorded:

At its meeting on June 13-17, 2022, the IAASB discussed key matters identified from the feedback received on the Exposure Draft. The Board agreed that the project to develop a separate standard for audits of LCEs should continue, while acknowledging concerns from respondents that did not support the project. The Board supported the LCE Task Force’s direction to better describe the scope of the draft standard and provided input on the description of a “typical LCE” and how that may be incorporated into the Authority (Part A) of the draft standard. The Board provided direction on how revisions could be made to address respondents’ concerns around further differentiating the ED-ISA for LCE from the ISAs (while still obtaining reasonable assurance) and the sufficiency of Essential Explanatory Material in the proposed standard. The Board also supported the inclusion of procedures for group audits in the scope of the draft standard and provided direction on the type of group audits that should be in scope and how such requirements may be presented. The LCE Task Force will continue to analyze responses to the ED-ISA for LCE and commence developing revised drafting in priority areas. In September 2022, the LCE Task Force plans to bring to the Board for discussion the revised Authority of the draft standard, proposed content and requirements addressing group audits, along with other targeted topics.

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