In an era where technology is rapidly transforming the landscape of external reporting, the IAASB has reaffirmed its commitment to staying at the forefront of these changes with the adoption of a comprehensive Technology Position Statement.

This Position Statement outlines how the IAASB will integrate technological advancements into its standard-setting activities to ensure that its standards remain relevant, effective, and aligned with the public interest. It also clarifies the IAASB’s new position, which includes:

• Embracing innovation in audit and assurance while ensuring that its standards evolve with the changing environment.
• Removing barriers in existing standards that may prevent using advanced technologies.
• Introducing new requirements and guidance to help practitioners apply technology-enabled procedures effectively.

A Three-Component Framework for Technology Integration

The IAASB's Technology Position is built on a conceptual framework composed of three key components:

1. Technology Position Statement: This core section details the IAASB's overarching stance on the role of technology in audit and assurance practices. It emphasizes the transformative potential of technology in enhancing audit and assurance quality and includes eight actions that the IAASB will take to deliver on its commitment to facilitate and encourage firms and practitioners to use technology.
2. Approach to Operationalizing the Technology Position Statement: The second component of the framework explains how the IAASB will put the Technology Position Statement into action. This includes identifying opportunities for standard-setting and developing non-authoritative materials, all in close consultation with key stakeholders.
3. Approach to Monitoring and Adapting the Technology Position: Recognizing the fast-paced evolution of technology, the IAASB will proactively monitor technological trends and adapt its Technology Position as needed. This ensures the framework remains effective and relevant in a rapidly changing environment.

Commitment to the Public Interest and Enhancing Engagement Quality

The IAASB's Technology Position Statement underscores its commitment to the public interest by focusing on enabling consistently high-quality engagements. As technology becomes increasingly pervasive in all aspects of external reporting, the IAASB has a crucial role in improving audit and assurance quality. The Statement highlights the IAASB’s dedication to developing standards that facilitate and, where appropriate, encourage firms and practitioners to use technology.

IAASB’s Actions to Navigate the Technological Landscape

The Statement includes eight key actions detailing how the IAASB will deliver on its new technological commitment:

1. Embrace Technology-Driven Innovations
2. Remove Barriers in the Standards, Real or Perceived, to Practitioners Using Technology
3. Introduce Requirements and Application Material Relating to Using Technology in Engagements
4. Address the Impact of Technology Used by Reporting Entities
5. Strike the Right Balance When Referring to Opportunities and Risks Associated with Technology
6. Align with Principles of Ethics and Ethical Requirements
7. Ensure Scalability and Proportionality
8. Convene Stakeholders and Foster Ongoing Engagement

Operationalizing the Technology Position

To turn its Technology Position into actionable outcomes, the IAASB is conducting a gap analysis, beginning with a review of its foundational standards: the International Standards on Quality Management and International Standards on Auditing. This analysis will identify potential areas for the IAASB to enhance the standards to better facilitate technological adoption. The findings will inform the IAASB's future work plans. Future work could include opportunities for new standards or revisions to existing ones as well as developing non-authoritative materials, all in close consultation with key stakeholders.

The IAASB is also developing a feedback mechanism to allow stakeholders and partners to provide feedback and insights, including any challenges they encounter when using existing standards and materials.

Ongoing Monitoring and Adaptation

The IAASB's approach to technology is dynamic, with a commitment to continuously monitoring the technological landscape. Through feedback from stakeholders and advisory groups, the IAASB will stay informed of emerging trends and adapt its standards and guidance as necessary. This proactive approach will help the IAASB maintain the relevance and effectiveness of its Technology Position in a rapidly changing environment.

For more information on the IAASB’s Technology Position Statement and to access the full document, please visit the Technology focus area page on the IAASB website.

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