Today, the International Auditing and Assurance Standards Board (IAASB) published key takeaways from its recent Paris conference on the audits of financial statements of less complex entities (LCEs). Drawn from two days of discussions with more than 130 participants from 33 jurisdictions, the takeaways indicate a strong steer for the IAASB to finalize the develop of a separate standard for audits of financial statements of LCEs in the public interest.
Key takeaways focus on themes around the continuing need for a timely global solution comprising a separate, standalone standard; working towards a common understanding of what an ‘LCE’ is and that this should also appropriately include audits of group financial statements; ways to support adoption and implementation of the standard; and the importance of communication about how the standard helps serve the public interest.
Along with the feedback from the public consultation on the exposure draft of the landmark new LCE standard, the key takeaways will help shape the draft standard and IAASB actions. The IAASB will next discuss the proposed LCE standard at its June meeting, which will be livestreamed on YouTube.