The International Auditing and Assurance Standards Board (IAASB) has introduced a Technology Position Statement with eight key actions to integrate advanced technology into audit and assurance standards. This is especially important for accountants preparing financial statements, as these statements are the ones scrutinised in the audit process. Being aware of these changes will help accountants align their work with new tech-driven auditing practices, ensuring smoother and more efficient audits.

Here’s why this matters to accountants:

1. Welcoming Innovation: The IAASB encourages the use of advanced technologies like AI, data analytics, and automation in audits. This helps streamline the audit process, which benefits accountants who prepare the financial statements by reducing the back-and-forth during audits.

2. Clearing Tech Roadblocks: Some standards have made it difficult to use new technologies. By removing these barriers, accountants can expect auditors to adopt more efficient tools, making the financial statement review process quicker and more accurate.

3. New Guidance on Using Tech: The IAASB will introduce clear guidelines for using technology in audits. Accountants will need to stay aware of these, as it may influence how their financial statements are prepared and presented to align with the auditor’s tech-driven procedures.

4. Adapting to Client Tech: Many businesses are already using advanced systems, and accountants need to prepare financial statements that auditors can easily review. The IAASB’s focus ensures that accountants’ work will seamlessly integrate with technology-based audits.

5. Balancing Risks and Benefits: While technology brings great benefits, it also poses risks such as data security concerns. Accountants need to be aware of these risks as they prepare financial statements, ensuring they provide the information auditors need to assess risks correctly.

6. Ethics and Flexibility: Accountants need to maintain ethical standards while preparing financial statements, even as tech becomes more common. The IAASB ensures that new tools align with ethical practices and can be adapted to firms of all sizes.

For accountants, understanding these technological advancements is key to preparing financial statements that align with evolving audit practices. By staying informed about these changes, you can work more effectively with auditors, ensuring smooth, efficient, and high-quality audits.

As the IAASB continues to update its standards, you should be ready to adapt their processes and take advantage of new opportunities in the audit process.

Read more on the IAASB website.