The International Auditing and Assurance Standards Board (IAASB) has developed an approach for maintaining its auditing standard for smaller and less complex entities, known as the International Standard on Auditing for Audits of Financial Statements of Less Complex Entities (the ISA for LCE).
The approach is detailed in an Approach Statement that promotes transparency and execution consistency. It establishes a mechanism for updating the ISA for LCE that emphasizes that revisions to the ISA for LCE should be:
- Relevant in the context of the typical nature and circumstances of an audit of a less complex entity; and
- Aligned, in a proportionate manner, with the core requirements and concepts of the International Standards on Auditing.
The Approach Statement sets out the context, purpose, process, responsibilities, outputs, and timing for maintaining the ISA for LCE. It also describes the steps the IAASB will follow when developing revisions to the ISA for LCE in response to new or revised auditing standards.
To learn more about the maintenance of the ISA for LCE, visit www.iaasb.org/ISAforLCE.
About the IAASB
The International Auditing and Assurance Standards Board develops auditing, assurance, related services, and quality management standards and guidance in the public interest that support consistent performance of quality engagements. Along with the International Ethics Standards Board for Accountants, the IAASB is part of the International Foundation for Ethics and Audit. The Public Interest Oversight Board oversees IAASB and IESBA activities and the public interest responsiveness of the standards. For copyright, trademark, and permissions information, please visit Permissions.