IRBA Opts Out of Adopting Audit Standards for Less Complex Entities

The Independent Regulatory Board for Auditors (IRBA) has announced a decision not to adopt the International Standard on Auditing (ISA) for Less Complex Entities (LCE). After a thorough review and feedback from key stakeholders, IRBA concluded that ISA for LCE does not bring significant benefits for the South African auditing environment. Key concerns included potential confusion in the market, limited efficiency gains, and challenges with dual methodologies. Stakeholders also feared a possible two-tier profession and recruitment difficulties for firms focused on LCE audits.

IRBA will continue engaging with the international auditing community to ensure that local standards remain relevant and rigorous, supporting high-quality audit practices in South Africa.

Read the announcement from IRBA here.