Analysis of the Provisions of the International Standard on Auditing for Audits of Financial Statements of Less Complex Entities (Isa for Lce) as Applied to the Conditions of the Republic of Moldova

Abstract

The necessity to elaborate the International Standard on Auditing the Financial Statements of Less Complex Entities (ISA for LCE) arose long ago, primarily due to the fact that when auditing the financial statements of such entities it is not always appropriate to comply with all the provisions of International Standards on Auditing for various reasons, including the fact that the entities are less complex. This standard does not define less complex entities; this prerogative is left to the competent authorities of various jurisdictions. Considering the provisions of this standard, the author analyzes various economic indicators that could be taken into account to classify as less complex enterprises for the Republic of Moldova. Assessing the business risks of the audited entity, the author considers a new category of intentional misstatements of financial statements. The article also analyzes the provisions of the International Standard on Auditing of Financial Statements of Less Complex Entities (ISA for LCE) in relation to the conditions of the Republic of Moldova. UDC: [657.6:006.44](478); JEL: M41.