Final Pronouncement: Technology-related Revisions to the Code

IESBA

Apr 11, 2023 | Standards and Pronouncements

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These technology-related revisions will guide the ethical mindset and behavior of professional accountants in both business and public practice as they take advantage of the opportunities created by technology and adapt to new technology. Developed to remain relevant and applicable in the ever-evolving landscape of technology transformation, the revisions apply to the use of any technology, including to the extent possible, future technologies.

The revisions, which were informed by extensive fact-finding and stakeholder outreach:

Strengthen the Code in guiding the mindset and behavior of professional accountants when they use technology.
Provide enhanced guidance fit for the digital age in relation to the fundamental principles of confidentiality, and professional competence and due care, as well as in dealing with circumstances of complexity.
Strengthen and clarify the International Independence Standards (IIS) by addressing the circumstances in which firms and network firms may or may not provide a technology-related non-assurance service to an audit or assurance client.

The revisions to the IIS will be effective for audits and reviews of financial statements for periods beginning on or after December 15, 2024. The other revisions to the ethics provisions of the Code will be effective as of December 15, 2024. Early adoption is permitted.

Update May 30, 2023

Some paragraph numbers and references have been updated in the final pronouncement (issued April 11) to reflect revisions to the Code arising from the Definitions of Listed Entity and Public Interest Entity, and Definition of Engagement Team and Group Audits pronouncements. The list of changes reflected in updated final pronouncement (published on May 30) is set out in the table below:


Paragraph numbers and references in Final Pronouncement issued April 11	Updated paragraph numbers and references in Final Pronouncement published May 30
220.11 A1 to A4	220.12 A1 to A4
R400.15 to 400.16 A1	R400.20 to 400.21 A1
400.15 A4 (reference to R400.16)	400.20 A4 (reference to R400.21)
400.16 A1 (reference to R400.15 and R400.16)	400.21 A1 (reference to R400.20 and R400.21)
600.9 A1 to A3	600.10 A1 to A3
600.9 A2 (reference to R400.15 and R400.16)	600.10 A2 (reference to R400.20 and R400.21)
600.13 A1 to R600.16	600.14 A1 to R600.17
R600.16 (reference to 600.13 A1 and R600.14)	R600.17 (reference to 600.14 A1 and R600.15)
601.5 A3 (reference to R400.16)	601.5 A3 (reference to R400.21)
606.1 (reference to 600.27 A1)	606.1 (reference to 600.28 A1)
R606.3 (reference to R400.15)	R606.3 (reference to R400.20)
R606.6 (reference to R600.14 and R600.16)	R606.6 (reference to R600.15 and R600.17)
950.7 A1 to A2	950.8 A1 to A2
950.10 A1 950.11 A2	950.11 A1 950.12 A2
950.11 A2 (reference to 950.11 A1(b))	950.12 A2 (reference to 950.12 A1(b))