A New Standard for Audits of Less Complex Entities


Smaller, less complex entities (LCEs) make crucial contributions to the world economy and account for the great majority of entities globally. At the same time, increasingly complex structures and transactions need to be addressed in the International Standards on Auditing (ISAs). This complexity in the ISAs can pose challenges for audits of less complex entities.

Based on the feedback from a discussion paper and outreach, the IAASB developed a draft standard proportionate to the typical nature and circumstance of an audit of a less complex entity and responsive to stakeholders’ challenges. 

The public consultation on this draft new standard was open until January 31, 2022 Since then, the IAASB has evaluated feedback received from the Exposure Draft, feedback survey, and outreach and is revising the draft to address stakeholder feedback.

When final, the standard will meet the growing global need for a separate standard for audits of less complex entities, while reducing the emerging risk of jurisdictional divergence.


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Consultation Close Date:

January 31, 2022

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ISAs to Proposed ISA for LCE


Watch our videos for detailed explanations on the draft new standard





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