ACCA backs FRC adoption of global audit standard for LCE

The Association of Chartered Certified Accountants (ACCA) has backed the UK Financial Reporting Council’s (FRC) imaginable adoption of an planetary modular connected auditing (ISA) for little analyzable entities (LCE).

The ACCA says aligning with the International Auditing and Assurance Standards Board’s (IAASB) standards would let audits to amended bespeak the circumstances of smaller and little analyzable businesses, benefitting these businesses.

Responding to the FRC’s telephone for views connected improving the usability of the LCE standard, the ACCA restated its enactment for bringing the model into the UK.

ACCA Technical and Strategic Engagement caput Glenn Collins said: “We person been agelong clip supporters of utilizing the IAASB auditing modular for LCE successful the UK. We are wide it provides a model for a consistent, efficient, high-quality audit that provides tenable assurance.

“However, we powerfully judge that a ceremonial consultation connected the adoption of the ISA for LCE is needed successful the UK. A ceremonial consultation connected the ISA for LCE is needed to grounds statement wrong the assemblage connected the astir due mode forward.”

The FRC is besides moving with the IAASB connected its attraction project, which involves revising elements of the LCE modular connected fraud and going concern.

ACCA EEMA & UK Policy and Insights elder manager Lisa O’Sullivan said: “We enactment retaining the rebuttable presumption of hazard of worldly misstatement successful narration to gross designation successful the LCE.

“We would invited examples successful which a rebuttal would beryllium due to promote due implementation.”

The ACCA added that it supports a proportionate attack to going interest procedures that reflects the circumstantial challenges typically seen successful LCE audits.

Last month, the ACCA besides supported the FRC’s updated auditing requirements connected fraud and going concern.

"ACCA backs FRC adoption of planetary audit modular for LCE" was primitively created and published by The Accountant, a GlobalData owned brand.

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