IAASB call for comments – Applying ISAs in audits of less complex entities
The IAASB is seeking views on the challenges in applying the International Standards on Auditing (ISAs) in audits of less complex entities and the possible actions to address these challenges.
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). The consultation will remain open until September 12, 2019.
The IAASB seeks to further understand the challenges of using ISAs in audits of less complex entities and to help them identify possible actions to address these challenges.
In many of the recent consultation responses, ICAS, along with other global accounting bodies, has been calling for a change in approach to address issues of complexity, length, understandability, scalability, and proportionality related to using the ISAs. There is a sense that many of the revised ISAs are focused on the most complex of audits and therefore have become increasingly irrelevant and onerous for smaller audits.
Following this feedback, and to a large extent, prompted by a move from the Nordic Federation to develop their own Standard for Audits of Small Entities (SASE), the IAASB has issued a Discussion Paper to explore how they, and others, could further support auditors working in the smaller and less complex entity environments.
The IAASB is seeking input from all interested stakeholders to help them develop an appropriate solution. They are particularly keen to reach out to the smaller practices to understand the key obstacles and issues they face when applying the ISAs to smaller and less complex entities.
As part of this outreach, the International Federation of Accountants (IFAC) have issued a short survey aimed at SMPs who will not be responding to the consultation to understand some of the issues they are facing. The survey will be open until 12 September and we encourage ICAS members working in this sector to respond.