The accountancy body argues that adopting the global standard would allow auditors to focus on the key circumstances of less complex entities, enhancing audit quality for smaller and less complicated businesses.

In its response to the FRC’s call for views, ACCA said the standard would benefit all auditors, including those in small and medium-sized practices.

Glenn Collins, head of technical and strategic engagement, ACCA, said: “We have been long time supporters of using the IAASB auditing standard for LCE in the UK.

“We are clear it provides a framework for a consistent, efficient, high-quality audit that provides reasonable assurance. However, we strongly believe that a formal consultation on the adoption of the ISA for LCE is needed in the UK.

“A formal consultation on the ISA for LCE is needed to evidence consensus within the profession on the most appropriate way forward.”

In addition, the FRC is engaging with the IAASB on its maintenance project – updating elements of the LCE standard on fraud and going concern.

In terms of the IAASB’s proposed updates, Lisa O’Sullivan, senior manager policy and insights, EEMA & UK, ACCA, said: “We support retaining the rebuttable presumption of risk of material misstatement in relation to revenue recognition in the LCE. We would welcome examples in which a rebuttal would be appropriate to encourage appropriate implementation.”

ACCA says it is supportive of a proportionate approach to going concern procedures that takes account of the particular challenges in LCE audits.

Mr Collins said: “In LCE management’s assessment of going concern may not be formalised in many owner managed businesses. We would welcome examples of accessible evidence in the absence of formal procedures.”

ACCA response is here.