ISA for Less Complex Entities
The ISA for LCE is a separate, proportionate auditing standard for eligible audits of less complex entities. Its use depends on the standard’s authority and the applicable jurisdiction; it is not automatically interchangeable with the full ISAs for every audit.
Worked example
An auditor assesses whether the entity and engagement meet the standard’s authority criteria before deciding whether it may be used.
Common mistake
A small entity is not automatically eligible: qualitative exclusions and jurisdictional restrictions must also be considered.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AAA (INT) | Direct | September 2026–June 2027 |