Notice is hereby given, pursuant to the Legislation Act 2019, that the New Zealand Auditing and Assurance Standards Board of the External Reporting Board has issued International Standard on Auditing (New Zealand) for Audits of Financial Statements of Less Complex Entities (ISA (NZ) for LCE).

The ISA (NZ) for LCE:

• applies to audit engagements performed in accordance with XRB Standards;
• is published on 19 June 2025 and takes effect on the 28th day after the date of its publication under the Legislation Act 2019 and commences to apply as set out below; and
• is secondary legislation for the purposes of the Legislation Act 2019.

Commencement and application

When standard takes effect (section 27 Financial Reporting Act 2013)

1. This standard takes effect on the 28th day after the date of its publication under the Legislation Act 2019.

Accounting period in relation to which standards commence to apply (section 28 Financial Reporting Act 2013)

2. The accounting periods in relation to which this standard commences to apply are:

(a) for an early adopter, those accounting periods, following and including, the early adoption accounting period

(b) for any other auditor, those accounting periods following, and including, the first accounting period that begins on or after the mandatory date.

3. In paragraph 2:

early adopter means an auditor that applies this standard for an early adoption accounting period.

early adoption accounting period means the accounting period:

(a) that begins before the mandatory date but has not ended or does not end before this standard takes effect (and to avoid doubt, that period may have begun before this standard takes effect); and

(b) for which the early adopter:

i. first applies this standard for an audit engagement of a less complex entity; and

ii. discloses in the auditor’s report for that accounting period that this standard has been applied for that period.

mandatory date means 15 December 2025.

Copies of the standard may be inspected free of charge at the offices of the External Reporting Board (XRB), Level 6, 154 Featherston Street, Wellington. Copies are also available on the XRB’s website at www.xrb.govt.nz.

Dated this 19th day of June 2025.

MARJE RUSS, Chair, New Zealand Auditing and Assurance Standards Board.