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 has developed a draft standard that is proportionate to the typical nature and circumstance of an audit of a less complex entity and is responsive to those stakeholders challenges and is a global solution.
The public consultation on this draft new standard was open until January 31, 2022. When final, the standard will meet the growing global need while reducing the emerging risk of jurisdictional divergence. This landmark new draft standard represents a new era for the IAASB and stakeholder feedback is now needed.
- The Exposure Draft is now available in French and Spanish; see Draft Standard & Related Materials below.