The new draft standard responds to demands to have a set of high-quality requirements tailored for the needs of less complex entities (LCEs). The new standard for audits of financial statements of LCEs will provide a globally consistent approach at a time where several jurisdictional-specific LCE standards or related initiatives are arising. It will be treated as a standalone standard specifically for smaller entities.

The proposed standard is based on the core requirements for an audit within the ISAs, which makes the proposed standard ‘easier’ to understand and use for those already using the ISAs.

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