November 5, 2025 l Business Mirror
“Technology is nothing. What’s important is that you have faith in people, that they’re basically good and smart, and if you give them tools, they’ll do wonderful things with them.”—Steve Jobs
EMERGING technologies, including artificial intelligence, affect everybody.
For the professional accountant, the transformation of the environment in which he/she operates is evident from the way the clients operate and render their financial reports and the tools available to hasten tasks. The continuing rapid changes yield opportunities and challenges and at times, threats.
The International Standards Setting Bodies (ISSBs) are very much aware of robust changes in the eco-system where professional accountants operate. In a report rendered to the Stakeholder Advisory Council during its October 21 to October 22 meeting in New York, they highlighted some of the attributes of the challenges and may I focus on three.
1. Opacity. The technological tool’s logic or decision-making process is not transparent.
2. Non-determinant. Identical inputs can yield varying outputs due to probabilistic processing, contextual sensitivity or other unpredictable influences.
3. Propensity to bias. The tool may have the tendency to yield not necessarily objective results, for influences from other “embedded” dimensions from the tool development process may be in place.
The two ISSBs—the International Auditing and Assurance Standards Board and the International Ethics Standards Board for Accountants—recognize the transformative potential of technology in enhancing audit and engagement quality. At the same time, the ISSBs emphasize the importance of safeguarding the public interest through sound quality management and alignment with ethical requirements. The risks and challenges of using technological tools aside from what are cited above include misinformation, automation bias, keeping data privacy, accountability and speed of change.
In the exchange of views among the members of the Stakeholder Advisory Council, it was evident that all welcome emerging technologies for all the positive impact like speed and efficiency that they contribute. Key principles guiding the professional accountant were often invoked like confidentiality, professional competence, diligence, due care, managing complexity, and independence in the context of audit and assurance engagements. Not to be set aside are the need to maintain clarity, consistency, and acceptance around the application of quality management and ethics principles related to emerging technologies.
While comments from the members of the Stakeholder Advisory Council vary, one observation forwarded said, “Technologies are mere tools and prudent use thereof bring about more upside than downside. At the end of the day, the professional accountant is responsible for his conduct, use of tools and generated report.”
Indeed, emerging technologies do not change the responsibility of the professional accountant and his/her relationship with the client. To end this note, may I cite a quote: “AI can’t build human relationships like you can. Trust forged between two people—client and accountant—is a bond impossible for AI to replicate.”
***The views expressed herein are her own and do not necessarily reflect the opinion of her office as well as FINEX. For comments, email clmanabat@gmail.com. Photo is from Pinterest.