Information & Communications Technology (ICT) Taskforce Issues Paper IAESB Meeting New York July 11-12, 2018

ICT Taskforce Ready, set….

ICT Taskforce Objectives Obtain sufficient evidence through information gathering activities to evaluate whether current IESs are fit for purpose in the digital age. Recommend standards development activities that are responsive to the needs of stakeholders.

ICT Elements Business Acumen Behavioural Competence Digital Acumen ICT Taskforce ICT Elements Business Acumen Behavioural Competence Digital Acumen Data Interrogation, Synthesis and Analysis Communication

Conclusions Reached at April 2018 Board Meeting ICT Taskforce Conclusions Reached at April 2018 Board Meeting Revise IESs Speed of Change Initial Mapping Evidence

Sources of Evidence Scope Breadth and depth of outreach extensive ICT Taskforce Sources of Evidence Scope Breadth and depth of outreach extensive Multiple methods used Targeted approach after indication of further engagement Active engagement through webinars and roundtables Non-traditional analysis performed Additional Benefits Combining outreach with Board meetings Increase awareness of IAESB across multiple stakeholder groups Comparison of “what is important” across different stakeholders

ICT Taskforce Sources of Evidence Member bodies, academics, other interested stakeholders, representatives of STAREP, regulators, small and medium practices, sole practitioners, other professional accounting organizations, Public Sector Accounting Standards Board members, American Accounting Association, Public Accountants in Business Committee, Financial Executive Institute, Global Accounting Alliance, Literature Review, Articles, Evaluation of ISAs, Auditing Standards Issued by PCAOB, Code of Ethics and competency frameworks.

Development of Competencies and Skills ICT Taskforce Development of Competencies and Skills ICT Elements Learning Goals Granular Skills Completed by Taskforce

Development of Competencies and Skills ICT Taskforce Development of Competencies and Skills ICT Elements (5) Business Acumen Data Interrogation, Synthesis, and Analysis Digital Acumen Communication Behavioral Competence

Development of Competencies and Skills ICT Taskforce Development of Competencies and Skills Agenda Item 3-4 Learning Goals (28) Cumulative knowledge obtained through the information gathering activities Taskforce’s judgment as to an ICT skill to be reasonably inferred from the statement or reference from the source These are not learning outcomes but we recommend that these serve as the basis for learning outcomes for the purpose of the Taskforce’s work through June 2019

Development of Competencies and Skills ICT Taskforce Development of Competencies and Skills Agenda Item 3-4 Granular Skills (92) Recognition that learning outcomes can be more useful to support implementation while retaining a principles-based approach Redefine minimum requirements prompted by changing environment The granular skills are not learning outcomes, but can serve as the basis to develop learning outcomes

Results Category Top ICT Element Member bodies ICT Taskforce Results Category Top ICT Element Member bodies Behavioral competence and communication Other stakeholders Behavioral competence Literature Communication Standards Business acumen Frameworks Digital acumen

Analysis of Elements - All ICT Taskforce Analysis of Elements - All

Analysis of Elements – Member Bodies ICT Taskforce Analysis of Elements – Member Bodies

Analysis of Elements – Other Stakeholders ICT Taskforce Analysis of Elements – Other Stakeholders

Analysis of Elements – Literature ICT Taskforce Analysis of Elements – Literature

Analysis of Elements – Standards ICT Taskforce Analysis of Elements – Standards

Analysis of Elements – Frameworks ICT Taskforce Analysis of Elements – Frameworks

Occurrences Number of Occurrences Element 0-10 11-20 21-30 31-40 21+ ICT Taskforce Occurrences Number of Occurrences Element 0-10 11-20 21-30 31-40 21+ Behavioral Competence - 1 2 Business Acumen Communication Data Interrogation, Synthesis and Analysis Digital Acumen 3 Total 7 4 6

ICT Taskforce Qualitative Factors The sources contemplated the relative degree of importance to the source. Taskforce does not recommend qualitative factors be developed and used in determining which Learning Goals and/or Granular Skills should be used to support the development of Learning Outcomes.

Minimum Number of Occurrences ICT Taskforce Minimum Number of Occurrences Sufficient evidence is needed prior to inclusion of a learning outcome. Taskforce recommends a minimum number of occurrences for each learning goal before they are further developed into Learning Outcomes.

ICT Taskforce Question What is the Board’s point of view on the conclusions reached by the Taskforce on the exclusion of qualitative factors and the need to determine a minimum number of occurrences?

ICT Taskforce Questions B. The Taskforce has concluded the process to develop an inventory of learning goals from information gathering activities is sufficient. Does the Board agree? C. Is the approach to developing granular skills based on the learning goals appropriate? If not, does the Board have any further recommendations to improve the approach?

Basis to Develop Learning Outcomes? ICT Taskforce Basis to Develop Learning Outcomes? Options A Learning Goals  Learning Outcomes B Granular Skills  Paragraph 26 Combination

ICT Taskforce Questions D. What is the Board’s point of view on whether Option A, Option B or a combination is more useful and meaningful to stakeholders? E. Based on your knowledge and experience are there any gaps to the inventory of learning goals?

ICT Taskforce Example Gap Analysis Paragraph 27 F. What is the Board’s point of view on whether the example gap analysis achieves its intended objective to demonstrate the basis for additions or edits to Learning Outcomes?

Recommended by the Taskforce ICT Taskforce Priority Project - ICT Recommended by the Taskforce Revise IES 2,3,4 and 8 and develop non- authoritative guidance Public document issued which consists of exposure draft and non-authoritative guidance - October 2018 Analysis of comments and revisions - April 2019 Issue new standards and accompanying non- authoritative guidance – June 2019

Issue non-authoritative learning outcome tables for IES 2, 3, 4 and 8 ICT Taskforce Priority Project - ICT Considered Issue non-authoritative learning outcome tables for IES 2, 3, 4 and 8 Wrap up work after July 2018 Board meeting and transition evidence obtained to new IFAC panel/board

Issue revised standards Issue non-authoritative guidance ICT Taskforce Next Steps – ICT Issue revised standards Issue non-authoritative guidance Package additional learnings from outreach activities [Stop] Assessment of proficiency levels and competency areas and any further implementation guidance

ICT Taskforce …adapt!