Smaller, less complex entities play a vital role in the world’s economy. In an increasingly complex world with evolving reporting needs, a need for a set of high-quality requirements tailored for the audits of less complex entities has emerged. With this consultation, the IAASB is moving to provide a globally consistent approach at a time where a number of jurisdictional-specific less complex entity standards are emerging, which is not in the public interest.
ACCA-CA ANZ joint response welcomes the opportunity to comment on the IAASB’s ED-ISA for LCEs (the ED). We commend the IAASB for responding to the responses to its earlier Discussion Paper on this issue and to the feedback that SMPs have been providing for a number of years that the ISAs have become increasingly complex and that scaling them to perform audits of less complex entities (LCEs) is challenging.
LCEs are an essential and very large sector of the global economy. In some jurisdictions they form the majority of the corporate populations and in others they are the vital not-for-profit, community and small business populations.
To read in full, please download the consultation response.