As a member of the International Federation of Accountants, ICAEW is required to incorporate revisions to its Code of Ethics which have been introduced by the International Ethics Standards Board for Accountants (IESBA). Some of the new provisions consider the impact of technology on the profession and related matters. 

In order to be as futureproof as possible, the revisions are principles-based and apply to all technologies. Specifically, the revisions: 

• provide guidance on applying the Fundamental Principles in the Code to the challenges introduced by the digital age; 

• advocate a robust approach to the mindset and behaviour required of professional accounts (PAs) in both business and in public practice as they navigate technological change; and

• strengthen the International Independence Standards by clarifying when firms and network firms are permitted to provide a technology-related non-assurance service to an audit or assurance client.

The Fundamental Principle of Professional Competence and Due Care now requires PAs to maintain a continuing awareness and understanding of technology-related developments relevant to their professional activities. In addition, there is an obligation on PAs to be able to explain the limits of any relevant technology-related matters to clients.

The revisions introduce a new definition of “confidential information”. This is now defined as: “Any information, data or other material in whatever form or medium (including written, electronic, visual or oral) that is not publicly available.” 

The new revisions now require PAs to take active steps to ensure the confidentiality of information throughout the entire data governance cycle. 

Once information is subject to the duty of confidentiality, PAs cannot disclose or use it (even internally), save in the limited circumstances set out in the Code. This restriction applies even if the information subsequently enters the public domain (either properly or improperly). 

The revisions clarify that the prohibition on the improper use of confidential information extends beyond using it for the personal advantage of the PA. The prohibition includes using such information for the advantage of the PA’s firm or employing organisation, or a third party.

The revisions include examples of potential self-interest threats associated with the use of technology, including whether the data available is sufficient; the technology is appropriate; or the PA has sufficient information or expertise (or access to an expert) to use and explain the technology. 

The section also sets out examples of self-review threats, such as whether the technology was designed or developed using the knowledge, expertise or judgement of the PA or their employing organisation. 

Significantly, the revisions now require PAs to exercise professional judgement in determining whether reliance on the output of technology is reasonable, and whether such outputs should be used in the preparation and presentation of information. 

Guidance on factors to consider is now set out in the Code, including those relating to “complex circumstances”. The importance of a PA having an inquiring mind is also relevant here; PAs should not become overdependent on the use of technology.

In addition, the revisions clarify that where technology is used in performing a professional activity for an audit client, the prohibitions on assuming management responsibility for that client still apply, regardless of the nature or extent of such use of the technology.

Read further details on the new revisions in the 2025 ICAEW Code of Ethics