ISA for LCE: A Standard for Audits of Less Complex Entities

The ISA for LCE is a standalone global auditing standard designed specifically for smaller and less complex businesses.

• It is standalone standard that is proportionate & tailored to the specific needs of an audit of less complex entities, which makes it easier to navigate for those practitioners who support these types of engagements.
• It provides the same level of assurance as an audit performed under the ISAs: reasonable assurance.
• It will help maintain confidence in financial reporting and promote the consistent application of auditing standards to LCEs, which reduces the risk of jurisdictional divergence by driving consistency and comparability globally.
• It recognizes the importance of smaller businesses and their specific audit needs.

A French translation of the ISA for LCE will be conducted in 2025 by IFAC, with the support of the Pan African Federation of Accountants and Fédération Internationale des Experts Comptables et Commissaires aux Comptes Francophones (FIDEF).

A version of the ISA for LCE presentation deck with speaking notes is available upon request. Please email IAASBcommunications@iaasb.org.

Gain a comprehensive overview of the ISA for LCE in this webinar featuring IAASB member Kai Morten Hagen and IAASB staff members Isabelle Raiche, Jasper van den Hout, and Kazuko Yoshimura. The team covers the standard's purpose, authority, structure and associated benefits.

The IAASB is committed to maintaining the ISA for LCE in line with developments in the business and audit environment, and in response to new or revised International Standards on Auditing (ISAs). Recognizing that the ISA for LCE has been designed to be proportionate to the typical nature and circumstances of an audit of a less complex entity, the IAASB will evaluate future changes through that lens—focusing on the relevance and proportionality of new or revised ISA requirements and concepts when applied to an audit of a less complex entity.

The IAASB has established the ISA for LCE Advisory Group to advise on revisions to the ISA for LCE and the adoption and implementation. The ISA for LCE Advisory Group serves as a consultative forum for the IAASB to gather timely and relevant stakeholders input on these matters. 
The ISA for LCE Advisory Group facilitates engagement with a target multi-stakeholder group of experts to contribute to the IAASB’s standard-setting and related activities by:

• Sharing insights, expertise, and advice with the IAASB on the expectations of stakeholders, including with respect to the adoption and implementation of the ISA for LCE.
• Providing views on proposed revisions to the ISA for LCE and, as applicable, the practical implications of such proposals. In respect to maintenance projects of the ISA for LCE, this includes providing views on the relevance and the proportionality of the changes to new or revised ISA(s) to the typical nature and circumstances of an audit of an LCE.
• Assisting the IAASB in reaching or contacting stakeholders to facilitate information gathering and outreach activities.

ISA for LCE Advisory Group Staff Contacts

• Jasper van den Hout
• Kazuko Yoshimura

ISA for LCE Advisory Group Board Members

• Greg Schollum
• Hernán Casinelli

ISA for LCE Advisory Group Members

• Benjamin Mbolonzi, Pan African Federation of Accountants (South Africa)
• Brendan Murtagh, DJH (Ireland)
• Helene Agélii, Chair of the IFAC Small and Medium Practices Advisory Group (Global)
• Jamie Patterson, National Audit Office (United Kingdom)
• Julie Corden, Deloitte (Canada)
• Kai Morten Hagen, Den Norske Revisorforening (Norway)
• Mara Cameran, Bocconi University (Italy)
• Mark Edmondson, Inflo (United Kingdom)
• Michael Manspeaker, American Institute of Certified Public Accountants (United States)
• Grace Lau, Hong Kong Institute of Certified Public Accountants (Hong Kong SAR)
• Viviene Bauer, BDO (Brazil)