Technology
Objective
Disruptive technologies have significantly impacted the work of accountants, including auditors and those in the finance and advisory fields, especially in terms of the technology and approaches they use. The IESBA has multiple technology-related workstreams.
- First, the IESBA is developing technology-related revisions to the International Code of Ethics for Professional Accountants (including International Independence Standards) (the Code). This work is being progressed by the Task Force.
- Second, the IESBA is developing non-authoritative material to respond to immediate stakeholder calls for technology-related guidance to assist professional accountants in business and in public practice, including auditors, to understand how to apply the existing provisions in the Code. This work is being progressed by the Working Group.
In addition, the IESBA is undertaking fact finding and information gathering which includes extensive stakeholder outreach to further understand the broader technology environment. Among other matters, the outcome of this fact finding and information gathering will help inform the technology-related revisions that are being made to the Code. The fact-finding and information gathering activities are being progressed by the Working Group.
Having a dedicated Task Force and Working Group enables the IESBA to accelerate the development and release of technology-related guidance while also progressing the development of technology-related revisions to the Code.
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TASK FORCE
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Project Stages
Board Papers
Board Minutes
September 2022 (Available December 2022)
Summary
IESBA September 2022 Meeting Highlights
Technology Project
The IESBA reviewed a full analysis of the significant comments received from respondents to the ED, Proposed Technology-related Revisions to the Code, and the Task Force’s proposed revisions to the text in the ED. Among other matters, the IESBA provided input on the Task Force’s proposals, including the addition of “interpersonal, communication and organizational skills” to the description of the fundamental principle of professional competence and due care to emphasize the professional skills that professional accountants need; the inclusion of an explicit prompt in the Code for professional accountants to secure confidential information in the entire data governance cycle (i.e., from data generation or collection through to its use, transfer, storage, dissemination and lawful destruction); the guidance to highlight complexity as a factor when applying the conceptual framework; considerations to help professional accountants identify threats that might arise when they rely on the output from technology; the prohibition on firms to provide hosting services to audit clients; and the inclusion of an explicit prompt in the Code to remind firms to consider the relevance of the non-assurance services (NAS) provisions in Section 600 when technology is provided, sold, resold, or licensed by a firm or a network firm to an audit client.
The IESBA will review a revised draft of the revisions to the ED at its November-December 2022 meeting with a view to final approval.
IESBA September 2022 Meeting Highlights
Technology Fact Finding & Thought Leadership
The IESBA discussed the final draft of the Technology Working Group’s report on its fact finding work on developments in technology and their potential impact on professional accountants from an ethics perspective. Among other matters, the report provides an overview of the technology landscape, includes a discussion of key themes observed, and provides insights and recommendations for the IESBA. In this regard, the IESBA broadly supported taking the recommendations forward for further consideration as part of the development of its Strategy and Work Plan 2024-2027. The insights as well as some of the recommendations, particularly those relating to the development of non-authoritative material, also have broader relevance to the International Federation of Accountants (IFAC), national standard setters, professional accountancy organizations and other stakeholders.
Taking into account the IESBA’s further input, the Working Group will finalize the report for issuance by the end of November 2022.
