Proposed International Standard on Auditing for Audits of Financial Statements of Less Complex Entities (Revised)

These proposed revisions are part of the IAASB’s commitment to maintaining a robust, proportionate, and globally relevant auditing framework for less complex entities. They update the ISA for LCE to address significant developments related to fraud, going concern, and public interest considerations, while ensuring the requirements remain appropriately tailored to audits of less complex entities.

Revisions are proposed in several areas, including:

• Fraud: Incorporating recent revisions to auditor responsibilities relating to fraud.
• Going Concern: Addressing recent developments in auditor responsibilities related to going concern.
• Listed and Public Interest Entities: Replacing the term “listed entity” with “publicly traded entity”, for which use of the standard is prohibited.
• Experts: Maintaining interoperability with the International Code of Ethics for Accountants (including International Independence Standards), issued by the International Ethics Standards Board for Accountants.