AASB Discussion Paper – Exploring Standard-Setting Options for Audits of Less Complex Entities

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The AASB issued a Discussion Paper, Exploring Standard-Setting Options for Audits of Less Complex Entities. Comments are due December 10, 2021.

This Discussion Paper seeks views on options the Board might consider undertaking in Canada to address the challenges of applying CAS to audits of less complex entities (LCEs). One such option is pursuing a separate standard for audits of LCEs modelled after the International Auditing and Assurance Standards Board’s (IAASB) proposals in their Exposure Draft, “Proposed International Standard on Auditing for Audits of Financial Statements of Less Complex Entities.”

The AASB believes practitioners’ ability to apply the CASs to LCEs in a scalable and proportional way is critical to performing high-quality, cost-effective audits that serve the public interest.

Therefore, stakeholder views on this Discussion Paper are essential to the Board’s decision on the direction of its future work.

The Board invites all interested parties to provide feedback, including:

  • practitioners and audit firms of all sizes;
  • lenders and other users of financial statements;
  • regulators, including provincial CPA bodies;
  • developers of audit tools and methodologies; and
  • academics.

The AASB issued a Discussion Paper, Exploring Standard-Setting Options for Audits of Less Complex Entities. Comments are due December 10, 2021.

This Discussion Paper seeks views on options the Board might consider undertaking in Canada to address the challenges of applying CAS to audits of less complex entities (LCEs). One such option is pursuing a separate standard for audits of LCEs modelled after the International Auditing and Assurance Standards Board’s (IAASB) proposals in their Exposure Draft, “Proposed International Standard on Auditing for Audits of Financial Statements of Less Complex Entities.”

The AASB believes practitioners’ ability to apply the CASs to LCEs in a scalable and proportional way is critical to performing high-quality, cost-effective audits that serve the public interest.

Therefore, stakeholder views on this Discussion Paper are essential to the Board’s decision on the direction of its future work.

The Board invites all interested parties to provide feedback, including:

  • practitioners and audit firms of all sizes;
  • lenders and other users of financial statements;
  • regulators, including provincial CPA bodies;
  • developers of audit tools and methodologies; and
  • academics.

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1. Do you believe that a separate standard for less complex entity (LCE) audits in Canada is an appropriate solution?

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