Skip to content

ACCA Strategic Professional · Advanced Audit and Assurance (International) · Professional and ethical developments

Mara & Co uses an AI-based tool to analyse journal entries in the audit of Sunvale Ltd. The engagement partner wants to rely on the tool's output without testing it. Which statement best reflects the IESBA technology-related revisions to the Code?

The auditor must consider whether the AI tool is fit for its purpose and whether its output can be relied upon, using professional judgement and holding sufficient competence. This follows from the competence and due care principle. Blind reliance on the vendor is not acceptable, and AI is not prohibited.

  1. AThe auditor may rely on any technology output because the vendor is responsible for its accuracy
  2. BThe use of technology removes the need for professional scepticism
  3. CThe auditor should consider whether the tool is appropriate for its purpose and whether the output can be relied upon, applying professional judgement and having the competence to use it, as part of the professional competence and due care principleCorrect
  4. DThe auditor is prohibited from using AI tools in any audit under the Code

Explanation

The IESBA technology revisions stress that the professional competence and due care principle applies to the use of technology. The professional accountant must consider whether the technology is appropriate for its intended purpose and that the output can be relied upon, while keeping professional judgement. Reliance on the vendor alone is not enough, and the Code does not prohibit AI.

Did you get it right without looking?

One question tells you little. A timed set on Professional and ethical developments shows your real accuracy, how long you take and where you lose marks.

Practise Professional and ethical developmentsFree diagnostic mock

More Professional and ethical developments questions