Therefore, in balancing the needs of all its stakeholders, as well as the time needed to develop changes to address the issues and challenges within the broader suite of International Standards on Auditing (ISAs), in June 2020 the IAASB agreed to two workstreams: In particular, issues related to complexity, understandability, scalability and proportionality for all audits was highlighted. The responses to the Paper also highlighted that many of the issues and challenges being experienced are not unique to LCEs and can also apply more broadly to other audits. The solution is not only one action, and likely involved a combination of the actions. The IAASB should prioritize its efforts on developing a solution to address the challenges and issues related to these audits.There is an urgent need to have an international solution to address issues related to audits of LCEs, as jurisdictions increasingly develop their own standards and commence other initiatives in this area, which may have long-term implications on the adoption and use of the IAASB’s international standards.The more substantial overarching themes included: The IAASB received ninety-three written responses to the Paper and published a Feedback Statement. In Exploring the Future Options for Audits of Less Complex Entities, we covered the IAASB’s 2019 Discussion Paper, Audits of Less Complex Entities: Exploring Options to Address the Challenges in Applying the ISAs, which sought input on the challenges of auditing less complex entities (LCEs) and explored potential possible actions. This landmark, proposed separate standard, marks a significant juncture for the global accountancy profession. On July 23, the IAASB issued an exposure draft for public comment on its Proposed International Standard on Auditing for Audits of Financial Statements of Less Complex Entities.
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