Audits of Less Complex Entities

AUASB Consultation Paper:

The Australian Auditing and Assurance Standards Board (AUASB) has released a Consultation Paper seeking public comment by 14 January 2022 on the IAASB’s new stand-alone standard for Audits of Financial Statements of Less Complex Entities, as well as Consideration of Possible Alternative Options for Australian LCE Audits.

Click here to read.

AUASB Survey:

Are the Auditing Standards Becoming Too Complex for Small Entities?

Audit practitioners globally are raising concerns about the growing level of complexity of the auditing standards and the difficulties in applying them to audits of small entities. The AUASB released a short survey to obtain Australian Stakeholder’s feedback on this important topic.

Click here to review survey results.

Responses to the survey will help the AUASB better understand the issues and challenges associated with auditing LCEs, so that the views of our Australian stakeholders can be effectively represented in the early stages of this IAASB Project.

Survey closed 31 August 2019

IAASB Discussion Paper:

Furthering the Debate on Applying the ISAs on Audits of Less Complex Entities (LCEs)

The International Auditing and Assurance Standards Board (IAASB) has published a Discussion Paper, Audits of Less Complex Entities: Exploring Possible Options to Address the Challenges in Applying the International Standards on Auditing (ISAs) which seeks to further understand the challenges of using the ISAs in audits of less complex entities—and views about possible actions to address these challenges.

In this Discussion Paper the IAASB recognizes the global call for action to address issues of complexity, length, understandability, scalability, and proportionality related to using the ISAs. Continuing the debate on these strategic issues, the Discussion Paper explores how the IAASB, and others, could further support auditors working in increasingly evolving environments.

Feedback on this document is requested to the AUASB by 31 August 2019 from all interested stakeholders.

Click here to submit a comment

IAASB Webinar:

Roger Simnett (AUASB Chair and IAASB LCE Taskforce Chair) gives key insights into the challenges, solutions and other areas of the discussion paper and importantly assist listeners in understanding why the IAASB landed where they did in the discussion paper.  

Click Here to Listen

CA ANZ Perspectives Article:

Roger Simnett (AUASB Chair) and Matthew Zappulla (AUASB Technical Director) provide an overview of the challenges, possible responses to those challenges and how Australian stakeholders can have their say on this important topic. 

Future Options for Auditing Standards applicable to Audits of Less Complex Entities (LCEs)

CPA InPractice Article

Roger Simnett (AUASB Chair) and Tim Austin (AUASB Project Manager) talk about the pressure being put on the profession and the opportunity that Australian Small and Medium practitioners have to influence the auditing standards.

Click here to read

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