Audits of Less Complex Entities

What the Project Aims to Achieve

The objective of the project is to develop a separate standard for audits of financial statements of Less Complex Entities (LCEs) to address issues and challenges related to complexity, understandability, scalability and proportionality for LCEs.

This project is also connected to the work being undertaken targeted at the complexity, understandability, scalability and proportionality (CUSP) of the ISAs more broadly. More information about the CUSP project is also available on the CUSP project page.

Project Timeline

Please note that forecasted milestones may be subject to change.

Current Status of the Project

At its December 2020 meeting, the IAASB approved a project proposal, which sets out the objective and scope of the project.

Since July 2020, the LCE Task Force has been developing the separate standard. An initial discussion of the draft standard was held with the IAASB in December 2020, and the progressed draft standard will be discussed at the March 2021 meeting.

The standard is being developed to:

  • Facilitate the performance of a high-quality audit that:
    • Maintains the degree of confidence in the audit of the financial statements for the intended users.
    • Is appropriate in the circumstances of a less complex entity. 
  • Enables the auditor to issue a reasonable assurance opinion. 
  • Be used effectively and efficiently in the circumstances to be able to obtain sufficient appropriate audit evidence to support the audit opinion.
  • Promote consistency in application through clear and understandable requirements that support a high-quality audit.  

Task Force Information

IAASB Staff Contacts

Task Force Members

LCE Reference Group

(Listed per alphabetical order of country / region)

  • HernĂ¡n Pablo Casinelli, Argentina 
  • Andrew Braithwaite, Barbados
  • Gordon Cummings, Canada
  • Chrystelle Richard, France
  • Tobias Polka, Germany
  • Sarah Coulson, Global
  • Mark Edmondson, Global
  • Selene Ho, Hong Kong
  • Nilesh Vikamsey, India
  • Kasumaningsih Angkawidjaja (Ningsih), Indonesia
  • Asmaa Resmouki, Morocco
  • Craig Fisher, New Zealand 
  • Kwunjai Kiatgungwalgri, Thailand 
  • Daniel Stephane Boutin, United Arab Emirates 
  • Khalid Ahmed Hamid, United Kingdom

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