The International Auditing and Assurance Standards Board (IAASB) has published a global standard for audits of smaller organisations.
The International Standard on Auditing for Audits of Financial Statements of Less Complex Entities, or ISA for LCE, is designed to provide reasonable assurance (the same level of assurance provided by other ISAs) over disclosures made by companies that qualify to use the new standard.
Resources made available on the IAASB website can help determine eligibility for use of the standard, which is effective for audits beginning on or after 15 December 2025, for jurisdictions that adopt or permit its use.
“By leveraging the International Standards on Auditing as our starting point, we are cultivating an environment where audits are performed in a globally consistent and high-quality way for the smallest entities,” IAASB Chair Tom Seidenstein said in a news release. “The IAASB’s actions seek to inspire greater confidence and contribute to the overall stability and trustworthiness of information in the external reporting ecosystem. We have also heard that this standard should provide an impetus for the evolution of auditing in developing economies.”
— To comment on this article or to suggest an idea for another article, contact Bryan Strickland at Bryan.Strickland@aicpa-cima.com.