IESBA reports on ethics for accountants using new technology

The International Ethics Commission released a staff statement Wednesday on the ethical implications of emerging technologies such as artificial intelligence in today’s accounting profession.

Administrative Matters

The new book, Reproductive Technologies: An Attitude-Based Approach to Ethical Considerations for Professional Accountantsaims to support accountants as they develop, implement or use emerging technologies, including AI, distributed technologies, machine learning, statistical analysis and robotics, in public and business operations.

But instead of focusing on individual technologies alone, the guide takes a holistic approach with the goal of staying relevant as technology continues to evolve.

The guide points out some of the key characteristics associated with emerging technologies – such as disruptive, non-specific, data-dependent, constant adaptation, autonomy, rapid development – and explains how they can create or increase threats to compliance with basic principles in International Standards for Professional Development (including National Freedom Standards). These basic principles include integrity, value, professional competence and due care, confidentiality, and professional behavior.

The book emphasizes that, regardless of the level of automation or technology involved, accountants are still responsible for the decisions they make in their work. It also highlights the importance of using a conceptual framework in the IESBA Code of Ethics with questioning thinking, professional expertise and human oversight when measuring technology-driven issues. The report emphasizes the need to maintain the right skills and care in a rapidly evolving technology environment, and why this requires a continued commitment to continuous learning and the development of relevant technical knowledge.

This staff publication is the first in a series of future technical guidance that IESBA plans to provide to accountants. More sophisticated, technology-specific tools are in the works, with the first such guide expected to focus on AI.

Based on input from the International Standards Committee’s staff, the new publication points to links to similar work being carried out by the IASB on Technical Quality Management. The IESBA said it will continue to work with the IASB on technology-related activities to strengthen the coherence and consistency of the IESBA Code of Ethics with the quality management and engagement standards of the IASB.