Ethics are the cornerstone of the accountancy profession, and following the ICAEW Code of Ethics is crucial for maintaining trust with clients, the public and regulators. 

To support members in applying the Code, and in meeting their professional development requirements,, ICAEW provides a free ethics elearning course which it updates annually.

The first update launches this week, adding two new units to Module 3 which address the evolving tech landscape and the growing role of organisational culture in ethical behaviour.

ICAEW’s Director of Regulatory Policy, Sophie Wales, says: “Member engagement with the Ethics CPD Course has been high since its launch and the new units offer valuable insights into emerging issues that are becoming increasingly relevant to the profession.

“The new units also serve as a reminder that all members must complete at least one hour of ethics CPD each year, keeping the importance of professional ethics front and centre for all ICAEW members.”

AI ethics for accountants

As artificial intelligence (AI) continues to gain traction in the accounting profession, the new unit, AI ethics for accountants, addresses the ethical risks associated with AI and provides practical guidance on managing these risks responsibly. 

David Gomez, ICAEW Senior Lead, Ethics, says: “As generative AI tools become mainstream, ICAEW will continue to add to its suite of resources for practitioners. However, it’s important to recognise that the use of AI is not just about mitigating risk; it’s also about ethics. And that’s the particular focus of this unit.”

The unit was developed following engagement with ICAEW members on their real-world experience of the ethical implications of AI, alongside input from academics and practitioners across firms and businesses. Gomez confirms: “The unit incorporates learnings from those discussions, identifying ethical considerations and setting out practical approaches for members to implement.” 

The unit starts by exploring the key features of AI, highlighting its applications in accounting, from automating routine tasks to enhancing decision-making processes. It identifies ethical risks such as bias, privacy concerns, and the need for transparency in AI systems, providing actionable strategies for mitigating these risks. 

The elearning also connects these ethical challenges to the ICAEW Code of Ethics’ Fundamental Principles, ensuring AI is used ethically and in compliance with professional standards. As AI reshapes the accounting landscape, this training ensures that members are well-equipped to navigate these changes with confidence and integrity.

How to develop an ethical culture

The second new unit, How to develop an ethical culture, empowers members to actively influence and promote ethical behaviour within their organisation. Discussing the development of the training, Gomez emphasises the growing importance of an ethical culture in organisations and the need for accountants to actively advance and foster ethical behaviour in their organisations.

He says: “You’ve probably heard the saying ‘culture eats strategy for breakfast’. When you look back at recently well-publicised corporate failures, there are often underlying cultural factors at play. Increasingly, accountants are being seen as ‘the conscience of the company’.’”

Part 2 of the Code of Ethics places a professional responsibility on all accountants to promote an ethical culture in their organisations. Gomez explains: “This applies to accountants working in professional firms as well. We thought it timely to create a unit highlighting this responsibility and providing useful resources on how to fulfil it properly.”

The new unit helps accountants understand their professional responsibility in fostering an ethics-based culture and provides practical tools and insights to create an environment where ethical decision-making is embedded in everyday practices. 

It explores how culture, values, and behaviour intersect to establish a workplace that prioritises ethical considerations at all levels. Additionally, the unit includes tools, case studies, and a section on “how to be an ethics influencer”, offering guidance on leading by example and inspiring others to adopt ethical behaviour.

 ICAEW’s Code of Ethics is based on the code created by the International Ethics Standards Board for Accountants (IESBA). IESBA has made firm culture and governance one of its strategic priorities, issuing a report this month that identifies factors contributing to a positive firm culture. 

Gomez explains: “IESBA plans to develop new standards and application material on ethical culture, which will eventually be incorporated into ICAEW’s Code of Ethics.” These ongoing efforts will further support members in maintaining the highest ethical standards as the profession continues to evolve.