International Standard on Auditing for Audits of Financial Statements of Less Complex Entities, known as the ISA for LCE, is a pioneering standard and significant milestone, addressing the unique needs of audits of smaller and less complex businesses.
The ISA for LCE is a standalone global auditing standard designed specifically for smaller and less complex businesses. Built on the foundation of the International Standards on Auditing (ISAs), audits performed using this standard provide the same level of assurance for eligible audits: reasonable assurance.
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ISA for LCE
The ISA for LCE is a standalone global auditing standard designed specifically for smaller and less complex businesses.
- It is standalone standard that is proportionate & tailored to the specific needs of an audit of less complex entities, which makes it easier to navigate for those practitioners who support these types of engagements.
- It provides the same level of assurance as an audit performed under the ISAs: reasonable assurance.
- It will help maintain confidence in financial reporting and promote the consistent application of auditing standards to LCEs, which reduces the risk of jurisdictional divergence by driving consistency and comparability globally.
- It recognizes the importance of smaller businesses and their specific audit needs.
A French translation of the ISA for LCE will be conducted in 2025 by IFAC, with the support of the Pan African Federation of Accountants and Fédération Internationale des Experts Comptables et Commissaires aux Comptes Francophones (FIDEF).
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Available Resources
A version of the ISA for LCE presentation deck with speaking notes is available upon request. Please email IAASBcommunications@iaasb.org.
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Video Series
Navigating the ISA for LCE
Exploring the Benefits
Learn more about the objectives, benefits, and distinguishing features compared to the full suite of ISAs
A Closer Look at Applicability and Use
Better understand the conditions under which the standard can be applied, including the role of legislative and regulatory authorities
A Step-by-Step Walkthrough
Gain an in-depth understanding of the standard’s design principles, structure, and content layout
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Watch the Global Webinar, Understanding the ISA for LCE
Gain a comprehensive overview of the ISA for LCE in this webinar featuring IAASB member Kai Morten Hagen and IAASB staff members Isabelle Raiche, Jasper van den Hout, and Kazuko Yoshimura. The team covers the standard's purpose, authority, structure and associated benefits.
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Maintenance of the ISA for LCE
The IAASB is committed to maintaining the ISA for LCE in line with developments in the business and audit environment, and in response to new or revised International Standards on Auditing (ISAs). Recognizing that the ISA for LCE has been designed to be proportionate to the typical nature and circumstances of an audit of a less complex entity, the IAASB will evaluate future changes through that lens—focusing on the relevance and proportionality of new or revised ISA requirements and concepts when applied to an audit of a less complex entity.
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What You Need to Know (short overview video)
