A new standard has been issued to help auditors involved in financial statement audits, who may have smaller / less complicated clients.
Introducing the International Standard on Auditing for Audits of Financial Statements of Less Complex Entities or, ISA for LCE, for short.
The goal of this new standard is to introduce efficiency in our audits, whilst still maintaining quality in delivering an effective audit to back up the auditor’s opinion.
Let us journey with you into unpacking this new standard as we look at its requirements and attempt to draw similarities and highlight differences, where obvious, between the ISA for LCE and the ISAs.
The requirements of the entire ISA for LCE standard will be simplified and summarised, relative to the following aspects:
• Scope / authority i.e., for which of your audit clients can you use this standard
• General principles
• Audit evidence / documentation
• Engagement quality management
• Pre-engagement and planning
• Responding to risk
• Concluding and reporting
• Appendices / illustrative templates
