LATEST UPDATE

IAASB Proposes Targeted Revisions to the ISA for Audits of Less Complex Entities

Exposure draft maintains the standard’s relevance through proportionate updates

The International Auditing and Assurance Standards Board (IAASB) released for public consultation proposed revisions to the International Standard on Auditing for Audits of Financial Statements of Less Complex Entities (ISA for LCE).

The proposed revisions update the ISA for LCE to address significant developments related to fraud and going concern, while ensuring the requirements remain appropriately tailored to audits of less complex entities.

The IAASB is seeking stakeholder feedback on whether the proposed revisions maintain the relevance of the ISA for LCE by addressing significant developments in a proportionate way that reflects the typical nature and circumstances of audits of LCE. The IAASB is also seeking input on the timeframe for future maintenance of the ISA for LCE.

The IAASB welcomes feedback from stakeholders by 17 November 2026.