Exploring possible options to address the challenges in applying the auditing standards

Thank you for your interest in the audits of Less Complex Entities (LCE) and for your willingness to complete this short survey.

The International Auditing and Assurance Standards Board (IAASB) have heard the concerns raised by practitioners globally, that auditing standards are becoming too complex to apply to smaller entities and have initiated the Less Complex Entities project.  

Your responses are important and will help the AUASB better understand the issues and challenges associated with auditing LCEs, so that the views of our Australian stakeholders can be effectively represented in the early stages of this IAASB Project. 

This survey contains a collection of short questions and should take less than 5 minutes to complete.

Please note that all individual responses are confidential and will not be attributed to you.

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* 1. In your opinion, how significant is the impact of each of the following matters on the audit environment for less complex entities?  
(Please rank the matters from 1 being highly significant to 9 not at all significant)

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* 2. In your opinion, how significant are each of the matters below in making the auditing standards a challenge to apply to audits of Less Complex Entities (LCEs)?
(7 being highly significant and 1 not at all significant)

  Not
significant
1
2 3 Neutral
4
5 6 Highly significant
7
The language is complex and difficult to understand
The auditing standards are long and voluminous
Documentation requirements are extensive and onerous
There is a lack of clarity and different interpretations as to what, and how, certain matters are documented
Requirements result in certain procedures being performed solely to comply with auditing standard requirements with no additional assurance or measurable increase in audit quality
The auditing standards are not clear about the nature and extent of work required
There is insufficient application or inadequate application material in the auditing standards addressing scalability and proportionality considerations
There is a lack of separate implementation support/ guidance in respect of the application of the auditing to the audit of LCEs
It is difficult to identify the relevant requirements for an LCE audit

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* 3. Which auditing standards are the most difficult to apply in audits of less complex entities? (Information on specific requirements would be helpful in understanding your response)

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* 4. The IAASB are exploring a range of possible actions to address the challenges in applying the auditing standards to audits of LCEs. Which action should be pursued as a priority?

  Not a priority
1
2 3 Neutral
4
5 6 High priority
7
Revising the auditing standards to make the auditor’s work effort clearer
Developing a separate auditing standard for audits of less complex entities
Developing guidance for auditors of less complex entities or other related actions

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* 5. If the auditing standards were revised to make the auditor's work effort clearer, which approach should be explored first?

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* 6. If a separate auditing standard for audits of less complex entities was to be developed, which approach should be explored first? 

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* 7. If guidance for auditors of less complex entities was to be developed, which approach should be explored first?

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* 8. In your opinion, what is the appropriate basis for categorising Less Complex Entities?

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* 9. If you are a practitioner, what percentage of your audit clients would be considered as Less Complex Entities?

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* 10. Are there any other matters that should be considered by the IAASB as it deliberates on the way forward in relation to audits of less complex entities?

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* 11. Which stakeholder group are you from?

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* 12. If you would like to follow the progress of this project and other AUASB projects, please sign up to the AUASB mailing list by providing your details below

0 of 12 answered
 

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