Virtual feedback forum – users and preparers of audited financial statements – ISA (NZ) for LCE

The XRB is seeking feedback from stakeholders on whether to adopt the International Standard on Auditing (ISA) for Less Complex Entities (LCE) in New Zealand. 

We have heard concerns that the auditing standards are becoming increasingly complex and written in the context of highly regulated, large, listed entities. In New Zealand, the type of entities that are required to have an audit varies considerably. There are many LCEs that have audits, including charities, sports clubs, schools and early childhood centres.

The ISA for LCE is a stand-alone auditing standard available for auditors to use when auditing less complex entities. The standard contains all requirements necessary to obtain reasonable assurance about whether the financial statements of a less complex entity, as a whole, are free from material misstatements, whether due to fraud or error.

We are interested in your views if you:

• use audited financial statements (or performance reports) of LCEs.
• own or manage a LCE.
• request LCEs to audit their financial statements. 

 At this event we will:

• provide a summary of the proposed standard.
• explore the potential benefits and costs of adoption.
• request your views on key aspects of our consultation via polls and written comments. 

More information on the consultation is here

Register for the event here

We are also holding a virtual feedback forum for auditors and a panel discussion – links are on our consultation page