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Auditors: Embrace AI, Keep Ethics

6 Sep

Summary

Accountants must rapidly adopt technology while retaining core human skills.
Public trust in audits is earned through ethical practices and professional scepticism.
Sustainability reporting requires new auditor skill sets and familiarization with regulations.

The International Federation of Accountants (IFAC) is calling for accelerated adoption of artificial intelligence (AI) within the accounting profession. IFAC's top executives stress that while technology can significantly enhance auditors' capabilities and provide deeper insights, it must be integrated without sacrificing essential human elements like professional scepticism and ethical conduct.

Concerns about AI replacing auditors have lessened, but the focus has shifted to equipping professionals with new skills. Lee White, IFAC's CEO, noted that accountancy has always been technology-driven, but the current pace of AI advancement requires a proactive embrace to upgrade skill sets. He underscored that earning and maintaining public trust hinges on steadfast ethical practices.

Jean Bouquot, IFAC president, echoed these sentiments, asserting that professional scepticism remains a cornerstone of audit excellence. He also pointed out that public trust is an ongoing achievement, not a static state. The IFAC, representing 188 member accounting bodies globally, held its board meeting in New Delhi recently.

Additionally, IFAC is addressing the rise of sustainability reporting. White urged auditors to build expertise in this area and become familiar with evolving global and local regulations. The IFAC has finalized assurance guidance, ISSA 5,000, to support auditors in this domain. In India, the Institute of Chartered Accountants of India (ICAI) has also established sustainability reporting standards, complementing the Securities and Exchange Board of India's (SEBI) Business Responsibility and Sustainability Reporting framework for top listed companies.

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