First update to ISA for LCE out for consultation

IAASB has sent a proposal for an updated ISA for LCE out for consultation, with a response deadline of 17 November 2026. It is the first update proposed to the standard since it was launched in December 2023, and it is in use in Norway, where it is known as ISA for MKE (mindre komplekse enheter).Revisorforeningen

Three changes are proposed. The fraud requirements are updated in line with the revised ISA 240, which sharpens the auditor's responsibility relating to the risk of fraud. The requirements for the auditor's going-concern assessment are updated in line with the revised ISA 570. And as regards who may use the standard, the scope term «listed entity» is replaced with «publicly traded entity» to make it clearer which entities fall outside the standard's scope. Under the standard as it stands, it is the nature of the entity that determines whether ISA for LCE may be used: an entity of public interest (foretak av allmenn interesse) cannot be audited under it, and simple group audits are subject to further conditions, including limits on the involvement of component auditors, set out in Part A of the standard. Audits performed under ISA for LCE provide the same level of assurance as audits under the ISAs.RevisorforeningenRevisorforeningen

Alongside the amendments, IAASB asks for views on a question the news item itself calls just as important as the changes: how often, and in what way, the standard should be updated going forward. Timing matters because of the standard's maintenance regime: an initial period of at least three years without updates runs from its entry into force on 15 December 2025, which means no revision of ISA for LCE can take effect before 15 December 2028. The standard applies to audits of financial statements for periods beginning on or after 15 December 2025, with early application allowed and encouraged.RevisorforeningenRevisorforeningen

Revisorforeningen is preparing a consultation response and will coordinate with its Nordic sister organisations so that Nordic views carry the strongest possible weight with IAASB. It invites auditors who audit small and less complex entities to send their input by 15 October 2026, in particular on how the updated fraud and going-concern requirements would work in their engagements, and on how often the standard should be updated and how much time they and their firms need to put changes into use. Input is directed to Ruben Bjerketveit, fagsjef revisjon (head of audit), telephone 400 33 430.Revisorforeningen