Highlights from PAAB’s Stakeholder Consultation on ISA for LCE Adoption

Date: 14 October 2025

The Public Accountants and Auditors Board (PAAB) hosted a stakeholder consultation meeting on 14 October 2025 to discuss the potential adoption of the International Standard on Auditing for Audits of Financial Statements of Less Complex Entities (ISA for LCE), developed by the International Auditing and Assurance Standards Board (IAASB).

The session was aimed at auditors and practitioners, providing an overview of the standard’s purpose, contents, and applicability, while offering a platform to gather feedback on its relevance to the Zimbabwean audit environment.

Key Discussion Points

  • The ISA for LCE aims to simplify audit procedures for less complex entities while maintaining audit quality and integrity.

  • Participants discussed implementation challenges, including market readiness, user perceptions, and the need for awareness programmes to address potential misconceptions about reduced audit work or fees.

  • There was broad recognition of the need for clear classification criteria to define less complex entities, as well as engagement with other stakeholders to ensure alignment.

  • The PAAB emphasized that no decision has been made yet on adopting the standard. Feedback gathered through the stakeholder survey will be used to guide next steps.

Next Steps

  • Survey Participation: All audit firms are encouraged to complete the ISA for LCE survey by Friday, 17 October 2025.

  • Transparency: PAAB will publish the survey results to share market perspectives and inform public dialogue.

  • Further Action: The Board will:

    • Consider establishing quantitative thresholds for defining less complex entities;

    • Engage with stakeholders to refine classification criteria;

    • Account for Zimbabwe’s economic and regulatory environment when determining applicability; and

    • Develop awareness and capacity-building programmes for preparers and users of financial statements.

Stakeholder input is critical in ensuring that the adoption of the ISA for LCE is both practical and beneficial for Zimbabwe’s auditing landscape.

Complete the survey here: https://docs.google.com/forms/d/e/1FAIpQLScgPgzqUUJkwXbGRhUuqgnBbhkYqlDh-Qc-gfJy0uU3EUeYjg/viewform?usp=header