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. To address this, the IESBA had multiple technology-related workstreams from 2021 to 2022.
- First, the IESBA developed technology-related revisions to the International Code of Ethics for Professional Accountants (including International Independence Standards) (the Code). This work was progressed by the Task Force.
- Second, the IESBA developed 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 was being progressed by the Working Group. Such material can be accessed in the IESBA’s Technology Focus Page.
In addition, the IESBA undertook 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 helped inform the technology-related revisions made to the Code. The fact-finding and information gathering activities were being progressed by the Working Group. The cumulation of this fact finding work led to the release of the Working Group’s Phase 2 Report.
PROJECT FOCUS PAGE
PROJECT CONTACT
TASK FORCE
CONSULTANT | WORKING GROUP
CORRESPONDENT MEMBER
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Project Stages
Other
Board Papers
Board Minutes
November-December 2022 (Available March 2023)
Summary
IESBA November-December 2022 Meeting Highlights
Technology Project
The IESBA unanimously approved the proposed technology-related revisions to the Code.
Subject to PIOB approval, the final pronouncement is expected to be released in April 2023. The ethics-related provisions will be effective as of December 15, 2024. The independence-related provisions will be effective for audits of financial statements for periods beginning on or after December 15, 2024, with early adoption permitted.
Technology Fact Finding & Thought Leadership
The IESBA supported the Technology Working Group’s proposed four-pillar approach to monitoring technology developments going forward, with a planned re-evaluation in December 2023. The four-pillar approach consists of internal board education, environmental scanning, ad-hoc analysis of technology impacts on other workstreams as needed, and facilitating the implementation of the Technology Working Group’s Phase 2 recommendations, including contributing to developing or facilitating the development of non-authoritative resources. In light of the reduced intensity of the monitoring work, the IESBA agreed to reconstitute the Technology Working Group as a smaller working group. Part of the new Working Group’s remit will be to maintain the liaison with the Technology Experts Group.
The IESBA will consider terms of reference for the reconstituted Technology Working Group at its March 2023 meeting.
