Overview

International Standard on Auditing for Audits of Financial Statements of Less Complex Entities, known as the ISA for LCE is a standalone global auditing standard designed specifically for smaller and less complex businesses. It is the nature of the business that determines if this standard can be used i.e., how complex the business activities, organizational and ownership structures, finance function, technology, accounting & reporting are. It cannot be used for the audit of entities that are listed or have public interest characteristics.

Built on the foundation of the International Standards on Auditing (ISAs), audits performed using this standard provide the same level of assurance for eligible audits: reasonable assurance. Further, the auditor’s report will have to refer specifically to the ISA for LCE for transparency.

The standard is effective for audits of financial statements of LCEs for periods beginning on or after December 15, 2025, for jurisdictions that permit its use.

History of ISA for LCE

Note: The above summary does not include details of consequential amendments made as the result of other projects.

Amendment under consideration

• None