1. IESBA Meeting New York, USA December 3-5, 2018
Technology
Patricia Mulvaney, IESBA Member, Technology Working Group Chair
IESBA Meeting
New York, USA
December 3-5, 2018

2. Objectives of the Session
To receive an update on Technology WG activities
To provide input to the WG’s proposed Terms of Reference for approval during the IESBA meeting

3. Proposed Terms of Reference
WG activities that have informed our proposal
Preliminary insights and observations from published reports and articles, and presentations to WG and Board
Feedback from respondents to SWP. joint IAASB/IESBA meeting and IESBA Board and CAG discussions
Initial discussions with stakeholders and subject matters specialists
WG’s preliminary assessment of threats to compliance with FPs and independence by technology category

4. List of Contact Stakeholder Organizations
Proposed Terms of Reference
List of Contact Stakeholder Organizations #
Stakeholder
Region
 1.
AICPA
American Institute of Certified Practicing Accountant NA 2.
ACCA
Association of Chartered Certified Accountants
Global
 3.
CEA
Cercle d’Ethique des Affaires EU
 4.
CIMA
Chartered Institute of Management Accountants
 5.
ECI
Ethics & Compliance Initiative
 6.
GU-MSB
Georgetown University – McDonough School of Business
 7.
DAWG
IAASB Data Analytics Working Group
 8.
ICAEW
The Institute of Chartered Accountants in England and Wales
 9.
IFAC SMPC
IFAC Professional Accountants in Business Committee
10.
IFAC PAIBC
IFAC Small and Medium Practices Committee
11.
IBE
Institute for Business Ethics
12.
IAETAG
International Accounting Education Transitional Advisory Group
13.
JICPA
Japan Institute of Certified Public Accountants AP
14.
Various public accounting firms

5. Basis for proposed way forward
Proposed Terms of Reference
Basis for proposed way forward
As an ethics board, the focus of our work should be on ethical considerations that impact the behavior of PAs when encountering and using technology
Expressly addressing impacts of technology on PAIBs is appropriate given their roles in private and public sector organizations
Limited published material focusing on impact of technology on ethical behavior (including of PAs), therefore need to engage with stakeholders through other means
Using two technology categories for information gathering and assessment of threats to FPs, independence and behaviors expected of PAs will be more effective than scoping too broadly
Seeking to strike balance between time needed for research and reflection and providing visibility to IESBAs work and commitment to addressing technological challenges (and opportunities) for PAs

6. Key Components - Objectives
Proposed Terms of Reference
Key Components - Objectives
Identify threats to compliance with FPs and independence
Both PAIBs and PAPPs
Develop responses to address the ethical issues identified
Revisions to Code and/or non-authoritative material
Identify outreach and partnership opportunities
Share knowledge
Promote the Code
Background
Objectives
Focus
Approach
Deliverables
Composition

7. Proposed Terms of Reference
Key Components - Focus
Ethical behavior of PAs, not broader ethical implications in society or deep analysis of technologies themselves
Specific consideration of impact on PAIBs
Align technology categories to those prioritized by IFAC:
Artificial Intelligence and Robotic Process Automation
Blockchain, Cryptocurrencies and Initial Coin Offerings
Cyber-crime and Cyber-security
Data Analytics and Big Data
Background
Objectives
Focus
Approach
Deliverables
Composition

8. Matters for IESBA Consideration
Proposed Terms of Reference
Matters for IESBA Consideration
Board’s View and reaction to?
A. Background
B. Objectives
C. Focus
Background
Objectives
Focus
Approach
Deliverables
Composition

9. Key Components - Approach
Proposed Terms of Reference
Key Components - Approach
Phase 1 – through December 2019
Use Data analytics/Big data and AI/Robotic process automation as the context for evaluating ethical behaviors of PAs
Information gathering and assessment
Engage with a broad range of external stakeholders via different forums
Identify opportunities to partner with other stakeholders
Review existing published reports
Communication and Coordination
Liaise and provide support to other IESBA TFs/ WGs
Coordinate with IFAC and sister SSBs (incl working groups thereunder)
Background
Objectives
Focus
Approach
Deliverables
Composition

10. Key Components - Deliverables
Proposed Terms of Reference
Key Components - Deliverables
Phase 1 – through December 2019
Update stakeholders through various communications channels (e.g., IESBA website, eNews, social media)
Invite informal input and comment from stakeholders
Consider how communications can be integrated into Restructured/eCode rollout program plans
Consider publication of non-authoritative material (e.g., Staff publication)
Provide quarterly updates at IESBA meetings
Provide Phase 1 final report at December 2019 IESBA meeting
Background
Objectives
Focus
Approach
Deliverables
Composition

11. Proposed Terms of Reference
Key Components – Phase 2
Phase 2 – commencing January 2019
Proposed scope and approach to be informed by Phase 1 work and included in Phase 1 final report
Learnings from approach to research and analysis in Phase 1 expected to result in accelerated progress of Phase 2 and beyond efforts
Background
Objectives
Focus
Approach
Deliverables
Composition

12. Matters for IESBA Consideration
Proposed Terms of Reference
Matters for IESBA Consideration
Board’s View and reaction to?
D. Approach
E. Deliverables
Background
Objectives
Focus
Approach
Deliverables
Composition

13. Work plan for Q1 2019 (subject to ToR approval)
WG in person and monthly telephonic mtgs
(Dec 6 and TBD)
Stakeholder meetings in London
Jan 2019
Add’l targeted stakeholder meetings TBD
Feb – Mar 2019
Board update at March 2019 IESBA meeting