The Staff of the International Ethics Standards Board for Accountants (IESBA) has released Emerging Technologies: A Characteristics-Based Approach to Ethical Considerations for Professional Accountants, to support professional accountants as they develop, implement, or use emerging technologies in public practice and business.
The publication provides timely thought leadership by offering an overview of the ethical implications of emerging technologies commonly used across the accountancy profession, including artificial intelligence, distributed ledger technologies, machine learning, quantum computing, and robotic process automation. Rather than focusing only on individual technologies, the guidance takes a durable, characteristic-based approach designed to remain relevant as technologies continue to evolve.
The guidance enumerates key characteristics associated with emerging technologies – such as opacity, non-determinism, dependence on data, perpetual adaptivity, autonomy, scalability, and speed – and explains how they may create or amplify threats to compliance with the fundamental principles in the International Code of Ethics for Professional Accountants (including International Independence Standards). These fundamental principles include integrity, objectivity, professional competence and due care, confidentiality, and professional behavior.
The publication emphasizes that, regardless of the level of automation or technological sophistication involved, professional accountants remain responsible for the judgments and decisions made in their work. It also underscores the importance of applying the Code’s conceptual framework with an inquiring mind, professional judgment, and appropriate human oversight when evaluating technology-driven outputs. It further highlights that maintaining professional competence and due care in an environment of rapidly evolving technologies requires an ongoing commitment to continuous learning and the development of appropriate technological literacy.
This staff publication marks the beginning of a sequence of future technology-related guidance for accountants. The IESBA plans to complement the characteristic-based publication with more practical, technology-specific materials, with the first such guidance expected to focus on AI.
Based on input from Staff of the International Auditing and Assurance Standards Board (IAASB), the publication highlights links to the parallel work that the IAASB is undertaking on Technology Quality Management. The IESBA will continue to coordinate with the IAASB regarding its technology-related activities to reinforce the connectivity and interoperability of the IESBA Code with the IAASB’s quality management and engagement standards.
For more information on IESBA’s technology-related work, please visit our website.
About IESBA
The International Ethics Standards Board for Accountants (IESBA) is an independent global standard-setting board. The IESBA’s mission is to serve the public interest by setting high-quality, international ethics (including independence) standards as a cornerstone to ethical behavior in business and organizations, and to public trust in financial and non-financial information that is fundamental to the proper functioning and sustainability of organizations, financial markets and economies worldwide.
Rui Peres Jorge
Director, Strategy and Communications
International Ethics Standards Board for Accountants (IESBA)
ruiperesjorge@ethicsboard.org | Direct: +351 966-301-383
Zsolt Bobis
Lead, Communications
International Ethics Standards Board for Accountants (IESBA)
zsoltbobis@ethicsboard.org
The Exposure Drafts of Proposed Revisions to International Standard on Auditing (ISA) 330, The Auditor’s Responses to Assessed Risks, ISA 500, Audit Evidence, and ISA 520, Analytical Procedures (Audit Evidence and Risk Response project). These exposure drafts will be released as a package in August.
Other topics we discussed during our meeting include:
Technology Quality Management – We discussed the proposed roadmap for the Technology Quality Management guide series, which is being developed as non-authoritative material. Building on the Action Plan approved in March 2026, the discussion helped further refine the roadmap and make it more concrete and actionable.
Technology Catalog – We discussed the latest monitoring update on emerging technological developments and proposed changes to the Technology Catalog. The updated Technology Catalog promotes transparency by giving stakeholders greater visibility into the technology-related matters we are monitoring and how those matters are progressing. The updated Technology Catalog has been published as a PDF with an interactive, digital version to follow later in Q3.
ISA 500 Series (Project Stage: Exposure Draft Development) – We discussed all key issues included in the project proposal related to inventory and external confirmations and preliminary drafting for some of the issues.
Recordings of the June 2026 meeting are available on our YouTube channel; more information on our projects can be found on the Latest on Our Projects web page.
Maintenance of the ISA for LCE
In December 2023, we published the ISA for LCE, a standalone standard that is proportionate and tailored to the needs of an audit of financial statements of a smaller and less complex entity. The standard provides a global solution to growing concern about the length, complexity, and understandability of the ISAs and their application to audits of less complex entities. The standard is effective for audits of financial statements for periods beginning on or after December 15, 2025.
We are committed to maintaining the ISA for LCE and developed anApproach Statement for Maintaining the ISA for LCE, which explains the approach and key principles for revising the standard in light of new or revised ISAs. It focusses on developing revisions that are relevant in the context of the typical nature and circumstances of an audit of a less complex entity and aligns the core requirements and concepts of the ISAs in a proportionate way. Also, it operationalizes the maintenance of the standard in a manner that is both effective and efficient, while ensuring transparency and consistency in execution.
The proposed revisions to the ISA for LCE were unanimously approved for exposure at the June 2026 meeting. We expect to issue the Exposure Draft for public consultation in mid-July.
In Q3 2026 we plan to publish the following consultations:
Proposed Revisions to the ISA for LCE –to be published on July 22, with the comment period ending on November 17.
Proposed Revisions to ISA 330, The Auditor’s Responses to Assessed Risks, ISA 500, Audit Evidence, and ISA 520, Analytical Procedures –to be publishedin early August, with the comment period ending in December.
As we continue supporting adoption and implementation of ISSA 5000, we are developing a series of frequently asked questions (FAQ) and updating jurisdictional adoption information. Access resources on the dedicated ISSA 5000 web page, including the recently released FAQ on the application of materiality.
Key Dates for this Quarter
From September 14 to 17, the IAASB will meet in New York, USA. The meeting agenda and meeting papers will be available on our September 2026 meeting webpage approximately two weeks in advance of the meeting. This meeting will be livestreamed on our YouTube channel.
These proposed revisions are part of the IAASB’s commitment to maintaining a robust, proportionate, and globally relevant auditing framework for less complex entities. They update the ISA for LCE to address significant developments related to fraud, going concern, and public interest considerations, while ensuring the requirements remain appropriately tailored to audits of less complex entities.
Revisions are proposed in several areas, including:
