IAASB looks for feedback on auditing standard for less complex entities

Accounting

The International Auditing and Assurance Standards Board is surveying stakeholders about a proposed standard for easing the audit requirements for less complex companies, while beefing them up for more complicated structures.

The IAASB and its affiliate, the International Federation of Accountants, opened a consultation last July on the proposed new standard and a smaller survey in November, which is open until Jan. 14, 2022, offering an alternative way to provide feedback. The survey is available in English, French and Spanish. The wider consultation is open until Jan. 31, 2022.

The new standard would allow auditors to tailor their audits more to the type of entity they are auditing. “In an increasingly complex world with evolving reporting needs, a need for a set of high-quality requirements tailored for the audits of less complex entities has emerged,” said the IAASB. “With this consultation, the IAASB is moving to provide a globally consistent approach at a time where a number of jurisdictional-specific less complex entity standards are emerging, which is not in the public interest.”

“Smaller, less complex entities play a vital role in the world’s economy. The IAASB has prioritized addressing the needs of stakeholders representing these entities over the last eighteen months,” said IAASB chair Tom Seidenstein in a statement last July. “Our new proposed standard’s objective is appropriately focusing the work of auditors through requirements designed to be proportionate to the typical nature and circumstance of less complex entities. We are not compromising on the quality of the audit.”

The IAASB is asking for feedback through either the survey or the consultation. An exposure draft of the proposed standard is available here, and stakeholders can also send in a comment by clicking on the “Submit Comment” button.

Photo courtesy of IFAC

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