1. IESBA Meeting New York, USA September 17-20, 2018
Technology
Patricia Mulvaney, IESBA Member, Technology Working Group Chair
IESBA Meeting
New York, USA
September 17-20, 2018

2. Objectives of the Session
To receive a presentation on the role and work of IFAC’s Technology Advisory Group
To share views about respondents’ comments to the SWP on the topic of technology
To provide input on the focus and approach of the Technology Working Group

3. Technology Advisory Group
IESBA
Sylvia Tsen Executive Director
New York September 17th, 2018

4. Purpose and Objective
Identify key technology trends that are/will impact the global accountancy profession;
Raise awareness, speak out, and demonstrate the profession’s expertise*
Provide input to IFAC’s comments and submissions to external stakeholder groups (G-20)
7 members (IFAC Board reps and member body reps)
* Aims to assist PAOs / the profession with access to tools, information; advocate and speak out on behalf of the profession; produce 1-2 unique thought pieces. Monitor work of IFAC Committees and standard-setting boards.

5. Which technology trends and why?
Artificial intelligence and robotics
Blockchain (distributed ledgers)
Cybercrime and cybersecurity
Data (big data, data analytics)
Impact on audit process, auditor and CFO / finance manager role

6. Input to policy
G-20
“Create a secure and digital-ready investment environment across G20 countries”
“Building trust in the digital environment demands assurance and security that citizens can understand and have confidence in.
The global accountancy profession stands ready as a partner with government and business to enable this future”

7. Education, skills and competencies: IFAC Board and TAG
“TAG: It’s About Tech!” (Council session >100 attendees)
Most boards don’t have cyber knowledge
Future of “teams” (there will be a robot)
Skills to germinate & grow vs destruct
IFRS knowledge needed?
Routine for robotics…
IAESB Survey on ICT Skills
Next steps: Thought leadership paper and virtual panel session

8. Understanding complex technologies
IBM Senior Team engagement & Watson demo
Machine learning and big data
Cybersecurity lack of experts and lack of spending
Wearables
Wall Street Blockchain Alliance
Accountants needed, especially for smart contract process
Microsoft Artificial Intelligence (and Ethics)

9. Supporting professional accountancy organizations
Reaching the Francophone and Spanish profession
Collaboration with Forum of Firms and PAOs
46 Gateway video segments
AI/Robotics; Audit Technology; Blockchain; Cybercrime; Data / Predictive Analysis; HR perspectives
Powerpoint Templates for PAOs
Blockchain & Data Analytics

10. Supporting professional accountancy organizations
Launch of “TAG Virtual Technology Series”
October 17 Data Analytics webinar (Robert Harris, Chair)
Data analytics firm, behavioral expert, Deloitte partner, IAASB data analytics TF chair
Aim for 3 a year
Skills and competency, Future of Audit, Cyber
Blockchain – save for later
Ethics and trust?

11. Global Knowledge Gateway
1,000,000+ Unique Visitors
210,234 technology pageviews

12. IFAC TAG
Questions or view?

13. Key Comments to SWP CP
The topic of technology and related services should be given priority
Strong support for principles based approach
The CF and FPs are sufficiently robust to apply to changing developments in technology
CF and FPs can be applied nimbly as change occurs, keeping the Code relevant into the future
Timeline should be accelerated
Opportunity to be responsive by developing “interim” non-authoritative material such as guidance and thought leadership piece in advance of more formal authoritative changes to the Code

14. Key Comments to SWP CP
Consider reviewing existing requirements in Code to determine if they remain relevant and fit for purpose after considering the impacts of evolving trends and developments in technology
Consider focusing on identifying two or three emerging issues each year and providing timely, relevant and practical guidance
Consider using advisory groups or panels and external experts in developing informed, credible guidance
Coordinate efforts among IESBA work streams in considering the impact of technology

15. Key Comments to SWP CP Potential ethics issues cited:
Need for/opportunity to revisit terminology, definitions and examples in the Code to reflect more closely the digital transformation business and society are undergoing. For example:
Does the definition of “professional activities” need to be re-examined?
Is clarity needed in defining whether licensing arrangements for technology based solutions constitute a professional service or a business relationship?
What is the definition of “office” in a virtual work environment?
What is the meaning of “routine and mechanical” in a highly digital environment?

16. Key Comments to SWP CP Potential ethics issues cited (continued):
Threats to confidentiality should be a focus due to the quantities of data being collected and used
Threats to professional competence and due care due to lack of technical knowledge
Professional judgement may be impaired due to information overload or questionable quality; also potential challenges to effective professional judgment if audit trail of machine-based decisions is not transparent.
There may be bias caused by use of AI

17. View and reaction to the key comments?
Key Comments to SWP CP
Question for IESBA
View and reaction to the key comments?

18. Potential Areas of Focus
Big data and data analytics
Artificial intelligence
Robotics process automation
Cryptocurrencies and ICOs
Blockchain
Cloud
Cybersecurity

19. Potential Areas of Focus
Big data and data analytics
Artificial intelligence
Robotics process automation
Cryptocurrencies and ICOs
Blockchain
Cloud
Cybersecurity
Any particular technology development that should be treated as priority by the WG?

20. Approach of the Working Group
Coordination with other SSBs and IFAC teams
Leveraging from work of other professional organizations
Explore opportunities for collaboration with NSS/ organizations
Use of Advisory groups/expert panels
Outputs and milestones

21. Approach of the Working Group
Questions for IESBA
Board’s view is sought on the following:
Suggestion of professional organizations/NSS that WG can work with
Effectiveness of advisory group/expert panel in light of PC comment
Outputs (e.g. staff publication, thought pieces)
Other comment

22. Next Steps WG meeting on September 20-21 to discuss approach and focus
Update from IAESB ICT Task Force Chair at the WG meeting
Update from IAASB Data Analytics WG
Present draft Terms of Reference at December 2018 meeting for approval