Canadian Auditing Standards

Discussion Paper: Audits of Less Complex Entities


The Auditing and Assurance Standards Board (AASB) is issuing this Discussion Paper to:

  • encourage Canadian stakeholders to respond to the International Auditing and Assurance Standards Board’s (IAASB) Discussion Paper “Audits of Less Complex Entities: Exploring Possible Options to Address the Challenges in Applying the ISAs”;
  • be copied on the Canadian stakeholders’ responses to the IAASB to inform the AASB of concerns from a Canadian perspective and to assist the AASB when preparing a its own response letter to the IAASB’s Discussion Paper; and
  • seek views from Canadian stakeholders on the questions asked in the IAASB Discussion Paper and whether there are any unique Canadian circumstances that the AASB needs to consider.

Staff Contact(s)

Eric Turner, CPA, CA

Director, Auditing and Assurance Standards Board


The IAASB is working to improve its understanding of the challenges practitioners face in applying the International Standards on Auditing (ISAs) to audits of Less Complex Entities (LCEs) so it can determine what actions can be taken in response to the challenges identified. The IAASB’s Discussion Paper focuses on:

  • challenges that have been identified to date relating to applying the ISAs to the audits of LCEs; and
  • possible actions that could be undertaken to address the identified challenges.

The IAASB is looking for input from all stakeholders, particularly practitioners auditing LCEs.

Importance to Canadian Stakeholders

Because the AASB adopts the CASs from the ISAs, the approach the IAASB decides to take in responding to the challenges in applying the ISAs to audits of LCEs is relevant to Canada. Therefore, it is important that the AASB and Canadian stakeholders respond to the IAASB, and for the AASB to be informed of any unique Canadian circumstances.