Background
The International Standard on Auditing for Less Complex Entities (ISA for LCE) offers a simplified application of international auditing requirements tailored for entities with less complex operations. ISA for LCE provides a streamlined approach that helps auditors apply core audit objectives while reducing procedures that are disproportionate for smaller entities.
ACAR is the accounting and auditing regulator under Cambodia’s Non-Bank Financial Services Authority and conducts outreach and capacity-building to support adoption of auditing standards. On 22 September 2026 ACAR organized an awareness workshop in collaboration with the Kampuchea Institute of Certified Public Accountants and Auditors (KICPAA) to introduce ISA for LCE to auditors, regulators and academic representatives.
Scope of Application
ISA for LCE is intended for audits of less complex entities, commonly found among small and medium-sized enterprises and some non-public interest entities. ACAR’s outreach targeted auditors, audit firms, regulator representatives and higher-education institutions to raise awareness of how the standard can be applied in the Cambodian context without implying a formal national mandate.
Key Provisions or Decisions
The workshop emphasized principles of proportionality and risk-focused audit work within ISA for LCE, encouraging auditors to concentrate resources on higher-risk areas. ACAR’s Director General highlighted that applying ISA for LCE can create a “smart audit” model by enabling auditors to prioritize substantive procedures where risks are greatest rather than applying uniform compliance steps that smaller entities may not implement.
Implications for Investors, Businesses, or Compliance
For audit firms, the standard and ACAR’s capacity-building activities signal a shift toward audit methodologies that tailor procedures to entity complexity, which may influence how audit engagements are scoped and documented. For businesses, adoption of ISA for LCE can affect the scope and depth of audit work performed on financial statements; businesses should expect auditors to apply professional judgment to determine appropriate procedures for their complexity level.
Official Source
Source: Accounting and Auditing Regulator (ACAR) announcement in collaboration with KICPAA; workshop held 22 September 2026. Original post: ACAR Facebook post.
