IESBA reports on ethics for accountants using new technology

The International Ethics Standards Board for Accountants released a staff publication Wednesday on the ethical implications of emerging technologies such as artificial intelligence in the accounting profession today.

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The new publication, Emerging Technologies: A Characteristics-Based Approach to Ethical Considerations for Professional Accountants, aims to support accountants as they develop, implement or use emerging technologies, including AI, distributed ledger technologies, machine learning, quantum computing, and robotic process automation, in public practice and business. 

But instead of focusing solely on individual technologies, the guidance takes a more general approach with the goal of remaining relevant as technologies continue to evolve. 

The guidance highlights some of the main characteristics associated with emerging technologies — such as opacity, non-determinism, dependence on data, perpetual adaptivity, autonomy, scalability, and speed — and explains how they can create or amplify threats to compliance with the fundamental principles in the International Code of Ethics for Professional Accountants (including International Independence Standards). These fundamental principles include integrity, objectivity, professional competence and due care, confidentiality and professional behavior. 

The publication stresses that, no matter what level of automation or technological sophistication involved, accountants are still responsible for the judgments and decisions they make in their own work. It also underscores the importance of applying the conceptual framework in IESBA’s ethics code with an inquiring mind, professional judgment and appropriate human oversight when weighing technology-driven outputs. The report emphasizes the need to preserve professional competence and due care in an environment of rapidly evolving technologies, and why that requires an ongoing commitment to continuous learning and the development of appropriate technological literacy. 

This staff publication marks the beginning of a series of future technology-related guidance that IESBA plans to issue for accountants. More practical, technology-specific materials are in the works, with the first such guidance expected to focus on AI. 

Based on input from Staff of the International Auditing and Assurance Standards Board, the new publication points to links to the parallel work that the IAASB is undertaking on Technology Quality Management. IESBA said it will continue to coordinate with the IAASB regarding its technology-related activities to reinforce the connectivity and interoperability of the IESBA Code of Ethics with the IAASB’s quality management and engagement standards.