New Standard for Audits of Less Complex Entities Issued by IAASB

The International Auditing and Assurance Standards Board (IAASB) has published the International Standard on Auditing (ISA) for Audits of Financial Statements of Less Complex Entities (LCE), which is available on:

The ISA for LCE is a standalone global auditing standard designed specifically for smaller, and less complex businesses and organisations. Built on the foundation of the ISAs, audits performed using this standard provide the same level of assurance for eligible audits: reasonable assurance. The standard is effective for audits beginning on or after 15 December 2025 for jurisdictions that adopt or permit its use.

A Basis for Conclusions was released alongside the ISA for LCE, and details feedback from the public consultation period, a high-level fact sheet, and a frequently asked questions document. Additional materials to help jurisdictions navigate adoption will be issued in 2024. All materials may be accessed on the IAASB website: