Skip to main content








International Standard on Audits of Financial Statements of Less Complex Entities (ISA for LCE)


10th April 2024


On 3rd April the International Federation of Accountants (IFAC) delivered a webinar on the International Standard on Auditing for Audits of Financial Statements of Less Complex Entities (ISA for LEC).

The webinar provided more information about the purpose and applicability of this new ISA as well as presenting the structure and flow of the standard.

About ISA for LCE

  • A stand-alone standard, developed to address the need for a global solution and aimed to reduce the complexities encountered by auditors when performing audits of SMEs.
  • Published by the IAASB in December 2023 and will be effective for audits beginning on or after December 15, 2025.
  • ISA for LCE focuses on the complexity of a business rather than its size and recognizes the importance of smaller businesses and their specific audit needs.
  • Auditors will still provide reasonable assurance; the same level of assurance that is provided for larger and more complex entities.


Limitations for use of ISA for LCE are designated into three categories:

  • Specific prohibitions.
  • Qualitative Characteristics.
  • Quantitative Characteristics.

There are also specific considerations on the applicability of ISA for LCE for Group Audits.

Auditors need to consider all three categories when determining whether the use of ISA for LCE is appropriate or not.

The next steps

During 2024 the IAASB will publish additional material to support adoption and implementation of the new standards. Furthermore, Jurisdictions will need to adopt the new standard and set the quantitative characteristics that define a less complex entity.

Finally, audit firms are to establish policies and procedures to guide engagement teams to perform an audit in accordance with ISA for LCE.


Should you require further details or information in relation to this new standard, please feel free to reach out to us on and

Stay up to date

Recent News & Insights

Stay up to date with the world of business and tax with news, insights and articles from our expert editors, accountants, and advisors. Our professionals provide valuable perspective on a range of topics that can help inform your business decisions and keep you informed about industry trends.


We’re Here To Help