LCEs play a critical role in the global economy and represent the majority of audits around the world and the UK. Adopting this new standard for LCE audits could have a significant impact on many auditors and the work they do. Learn more about these proposals by watching the recording of this event
The length and complexity of auditing standards have grown in the last thirty years. This growth is a reflection of globalisation, increasing sophistication in auditing practices and a genuine growth in the complexity of larger entities. For smaller LCEs, audit work and bureaucracy has increased disproportionately. While standard-setters have attempted to make standards scalable to LCEs, these efforts have not always been seen as successful.
In June 2021, IAASB issued a landmark exposure draft of a standard for the audit of LCEs. Like less complex accounting standards for smaller entities, this auditing standard for smaller entities would be based on a simplified, risk-based approach.
IAASB is now seeking views from auditors worldwide on their proposals. They welcome ICAEW member views on what they think works, as well as what could be improved upon with these proposals.
At this hybrid event held in Chartered Accountants’ Hall and virtually, Tom Seidenstein, IAASB Chair discussed the proposals, their background and how they were developed with a panel chaired by Alex Peal, Managing Partner, James Cowper Kreston, and including Catherine (Willshire) Hardinge, Partner, Price Bailey, Rachel Davis, Owner, Just Audit, Mark Babington, Executive Director, FRC and Kai Morten Hagen, Chair of the LCE Taskforce and IAASB Board Member. They debated the proposals and answered audience questions. Watch it now to learn more about the debate.