IESBA Proposes Technology-Related Revisions to Global Ethics Code
The International Ethics Standards Board for Accountants (IESBA) recently released for public comment proposed technology-related revisions to the International Code of Ethics for Professional Accountants, including International Independence Standards.
The IESBA stated that the proposed revisions should increase the Code’s relevance in an environment being reshaped by rapid technological advancements as well as guide the ethical mindset and behavior of accountants in business and public practice as they continue to adjust to technological changes.
Among other matters, the proposals:
- Bring attention to the professional competence and confidentiality requirements of the digital age.
- Address the ethical aspect of accountants’ reliance on, or use of, technology in their work.
- Enhance considerations relating to threats from the use of technology as well as considerations relating to complex circumstances in applying the Code’s conceptual framework.
- Strengthen and clarify the International Independence Standards (IIS) with respect to technology-related non-assurance services (NAS) firms may provide to their audit clients or technology-related business relationships they may enter into with their audit clients.
- Explicitly acknowledge that the IIS that apply to assurance engagements are applicable to assurance engagements on non-financial information such as environmental, social and governance (ESG) disclosures.
The IESBA codes have many similarities to the AICPA codes. Both address areas such as independence, due care, confidentiality and truthful reporting. The underlying principles of the codes are also similar, although the IESBA addresses confidentiality and marketing as principles applicable to all professionals, and the AICPA includes them as rules applicable to members in public practice. The IESBA ethics requirements for professional accountants in business are much like those of the AICPA as well, although IESBA guidance is more comprehensive regarding some topics, such as inducements and acting with sufficient expertise.
The proposed revisions to the IESBA Code expand on changes that became effective last December and the revised NAS provisions that will become effective in December 2022. The IESBA invites all stakeholders to comment on the Exposure Draft on its website by June 20, 2022.