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SMPAG Comment Letter to the ISA for Less Complex Entities Exposure Draft

| Comment Letters

As the IAASB will be aware, in its response to the ISA for LCE Exposure Draft and in multiple other letters, the SMPAG raised strong concerns in relation to group audits being excluded from the standard and the impact this could have on severely limiting its use. It therefore welcomes the IAASB reconsidering its decision and developing proposals that address audits of less complex groups. It also support the inclusion as a separate Part 10. However, the SMPAG does not agree with the prohibition on the involvement of component auditors to be limited to circumstances in which a physical presence is needed. It believes that the standard should be principles-based and allow for more judgment on the complexity of the entity.

This project is extremely important to SMPs, and the SMPAG encourages the Board to continue to prioritize the finalization of the standard in accordance with the proposed timetable of September 2023.

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