LATEST UPDATE

IRBA Board not to adopt the ISA for LCE

On 29 October 2024, the Independent Regulatory Board for Auditors’ (IRBA) Board approved a decision not to adopt, issue or prescribe the International Standard on Auditing (ISA) for Audits of Financial Statements of Less Complex Entities (LCE) (ISA for LCE) (and conforming amendments to other International Standards arising from the standard) for use by registered auditors in South Africa.

The IRBA, through its Committee for Auditing Standards (CFAS), had undertaken an extensive analysis to assess the possible outcomes of adopting the ISA for LCE. Several concerns/issues were highlighted, which were also recorded in the outreach conducted by the South African Institute of Chartered Accountants.

Therefore, the Board’s decision not to adopt the ISA for LCE has been predicated on these concerns and issues, and the deliberations of CFAS.

The IRBA will continue to monitor international developments, and engage with stakeholders to ensure that South African auditing standards remain relevant and of high quality.

For any further queries, please contact the Standards Department by emailing standards@irba.co.za