Gabriela Figueiredo Dias, chair of the International Ethics Standards Board for Accountants, has been reappointed for a second term, beginning Jan. 1, 2025 and ending Dec. 31, 2026.

Figueiredo Dias has been leading the global ethics board since January 2022. During her first term, she spearheaded the IESBA through a strategy shift, including strategic initiatives that strengthened the relevance and widened the impact of the IESBA’s International Code of Ethics on innovative matters. 

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She has also been leading development of new standards such as the soon-to-be-released sustainability-related standards, which will lay a foundation of ethics and independence as part of the global standards infrastructure for sustainability reporting and assurance.

Other new standards finalized over her first term included standards addressing the ethical dimensions of tax planning and related services, the transformative effects of technology on the accounting, assurance and finance functions, and auditor independence for group audits.

The reappointment comes at a significant time for the IESBA, as the board pursues a bold Strategy and Work Plan for 2024-2027, with a special focus on two strategic areas: culture and governance of accounting firms, and exploring extending the impact of the IESBA Code beyond its traditional scope. Other priorities include initiatives to address topics such as auditor independence in relation to collective investment vehicles, and the evolving role of CFOs. Figueiredo Dias’ first term has already brought progress on some of these priorities.

“I am honored to continue to lead the important work we are advancing at IESBA in the public interest,” Figueiredo Dias said in a statement Wednesday. “In times when ethics matters increasingly for sustainable businesses, markets and economies, it is essential that our standards meet the highest public expectations. Ethics is not optional. It is the bedrock of the accountancy profession and of the public trust in the profession’s work. I look forward to progressing the ambitious agenda we have set, with the critical collaboration of our stakeholders, as we address the complex ethical challenges our world faces today.”

Before joining the IESBA, Figueiredo Dias served as chair of the Portuguese Securities Market Commission and was a board member of the International Organization of Securities Commissions and the European Securities and Markets Authority. She also served as vice-chair of the Organization for Economic Cooperation and Development’s Corporate Governance Committee.

Figueiredo Dias will be eligible for another term in 2027. “Under Gabriela’s leadership, the IESBA has tackled important projects over the past three years, which are in many instances groundbreaking and elevating the ethics agenda,” said Public Interest Oversight Board chair Linda de Beer in a statement. “The vital work on Sustainability and External Experts projects, coming to conclusion, being most pertinent. We are therefore glad to be able to renew Gabriela’s important leadership role as chair of the IESBA for a second term, in the first Standard Setting Board chair re-appointment process fully in the hands of the PIOB. We have done this in close consultation with the Monitoring Group Chair and other stakeholders who have a keen interest in the work of the IESBA. We wish Gabriela well for the term ahead, in continuing to steer the IESBA’s ambitious Strategy and Work Plan, which include the very important project on Firm Culture and Governance, central to the public interest.”

The Public Interest Oversight Board, which oversees IESBA and the International Auditing and Assurance Standards Board, also announced several other new appointments and re-appointments to the IESBA and the IAASB this week that will take effect in January.

The PIOB appointed Channa Wijesinghe, CEO of the Accounting Professional & Ethical Standards Board of Australia. as vice-chair of IESBA for a two-year term, following his re-appointment to the board. Nancy Miller, managing director of KPMG US, and Obichukwu Nwazota, managing consultant of UGN Consulting Services in Nigeria, were appointed as new IESBA members. Mark Babington, executive director of the U.K.’s Financial Reporting Council, and Christelle Martin, a former ENGIE senior executive in France, were re-appointed for three-year terms, and Richard Huesken, a consultant and recently retired global independence leader at EY US, for a final year of service.

For the IAASB, Josephine Jackson, director of international audit and assurance standards policy at the U.K.’s Financial Reporting Council, was re-appointed as IAASB vice-chair for a final year of service. Nancy Cheng, audit committee chair at Shared Services Canada; Amaro Gomes, audit committee member at Banco Bradesco; Xiaoyue Sun, partner at BDO China; and Mikiko Ono, director of sustainability disclosure regulations at Recruit Holdings in Japan were appointed as new IAASB members, and Bill Edge, former chair of Financial Reporting Council and Auditing and Assurance Standards Board of Australia, and Neil Morris, global head of ESG assurance and methodology at KPMG, South Africa. were re-appointed, all for three-year terms.

Generative artificial intelligence is making inroads into the accounting industry, promising to greatly increase efficiency and productivity while offering real-time, deep insights that help improve performance. As firms deal with labor shortages and expand their services amid elevated client expectations, they are avidly exploring AI’s possibilities.

AI doesn’t come without caveats, particularly for accounting firms that work with highly sensitive personal and financial information of their clients. Although Gen AI’s potential benefits are considerable, firms should proceed cautiously and understand its impact on business.

For all of its potential, AI may not immediately solve all of the industry’s challenges. As the initial excitement subsides, it’s critical that IT teams ensure that any AI initiatives align with the objectives of their stakeholders — including the firm itself, clients and regulatory bodies. 

The steps to implementing responsible AI

Building a responsible AI strategy starts with a clear understanding of the specific problems or opportunities the firm aims to address with AI, coupled with a commitment to educating leadership and employees on what AI can and cannot achieve. This foundation ensures AI is implemented and used thoughtfully, with resources aligned to deliver maximum impact. 

Accounting firms also need a strong data and analytics strategy to ensure their data is well-structured before implementing AI. Structured data is the backbone of responsible AI, enabling faster, more accurate insights and transforming data into a powerful decision-making tool. Without it, AI risks stumbling on inconsistencies and poor-quality data, leading to misguided outcomes and wasted resources. In short, well-structured data unlocks AI’s full potential.

Once these fundamentals are in place, firms can assess their current maturity and readiness for AI implementation. Using a Capability Maturity Model specific to knowledge work automation provides a structured framework for this purpose, helping firms evaluate their competencies across five key considerations when adopting new technologies:

• Information strategy;
• Governance/resourcing;
• Technology/IT infrastructure;
• Level of automation; and.
• End-user capabilities.

By using the model, firms can identify their capability levels in each category, ranging from beginner to advanced. For example, in the area of information strategy, a firm with minimal IT and business alignment may be considered a beginner, whereas one with integrated alignment across IT, business and executive functions may be classified as more advanced.

Responsible AI will prioritize safety, transparency and trustworthiness. Firms need to strike a delicate balance between innovation and security, which first requires a thorough evaluation of data connectivity, curation, and confidentiality. 

To properly incorporate responsible AI, there are five essential areas accounting firms should consider:

Protecting client privacy

Because safeguarding client information is the foundation of building trust with clients, privacy protections must be a top priority when accounting firms add solutions to their tech stack or develop new tools.

Firms can ensure they meet client expectations of confidentiality by practicing techniques like data minimization, ensuring firms handle the least amount of information required for a specific purpose. That can reduce the risk of data breaches, privacy violations and misuse.

Firms should also never share client information on public platforms like ChatGPT, which are vulnerable to cybersecurity threats that the firm has no control over.

Guarding against bias

An AI model trains by analyzing enormous volumes of data and applying what it learns to perform its tasks. Data scientists and developers need to be wary of the information they use to train and create AI algorithms. If biases exist in the training data, those biases will be replicated in the AI model’s work and generate unrelated or incorrect information. 

For example, a model may be trained to scrutinize a particular account that has a history of misstatements while overlooking new accounts in the current year. Or it may apply a biased risk profile to particular groups of clients based on historical data rather than client-specific information. IT teams should scrutinize inputs and outputs regularly to detect biased results.

Promoting trust through transparency

AI’s performance should not be a mystery; the models used by accounting firms should be simple, auditable and explainable. Explainable AI methods and tools can show how AI arrives at its decisions, allowing humans to understand the outcomes or identify and address potential issues. Establishing this level of transparency will help foster and demonstrate trust and respect with customers, users, and stakeholders.

Enforcing accountability

Better transparency enables better accountability. A user or group of users — which can include developers, deployers and even end users — should be assigned to regularly monitor and audit the firm’s AI models. They should be able to explain the rationale behind the AI’s outputs and perform updates or make adjustments to correct issues or errors. 

Redefining roles

The truth is that AI isn’t going to replace accountants, but it will redefine their roles. AI has the power to transform the way accountants work, freeing employees from mundane tasks to drive growth. Accountants need to grasp the power of pairing their expertise with AI and learn to work with it to improve performance and efficiency.

AI will need accountants to provide extensive monitoring and oversight. But by taking over a lot of routine tasks that accountants spend time on now, AI will allow them to focus on more complex high-level initiatives. In the process, AI will help alleviate the labor shortage and could improve firm retention.

Future-forward accounting firms can reap immense benefits from GenAI as they embark on their digital transformation journey. However, they need to ensure they protect privacy and security. Implementing AI within a capable knowledge work automation framework can, for example, help ensure that data remains confidential, stays within internal system boundaries and that employees have access only to the data they need.

Making sure AI models are trained on complete, bias-free data. Having accountants monitor AI’s outputs can maintain transparency and ensure efficient, effective use of the technology. AI is part of the path forward for the industry, but firms need to be sure they step carefully.

Tax planning software provider TaxPlanIQ released its ROI Method of Value Pricing Calculator to help firms price their advisory services based on measurable client outcomes. The solution debuted at an AICPA & CIMA event and is now available as a downloadable workbook. 

The solution features an ROI-centered pricing model that helps firms set fees based on the expected return on investment for clients, complexity of the implementation work and more. The calculator features a step-by-step approach to make it accessible to firms with little tax planning experience. 

It is also intended to help firms better explain the value of their services and just what clients are paying for and why. Unlike a traditional hourly billing model, this method focuses on the financial impact and strategic value perceived by the client upfront. By using this calculator, practitioners can demonstrate the value of their services through analyzing the cost savings and income opportunities for the client. It aims to provide clients with a better understanding of their return on investment. 

The method begins with an estimate of both cost savings and tax savings for the client. Then the practitioner can calculate a suggested price based on a desired ROI. Additional elements can be factored in such as the complexity, urgency or riskiness of the engagement, or other benefits such as concierge services or unlimited email support. Ultimately this produces an ROI report. The practitioner can walk clients through all the calculations in the report, propose a fee and then, if they agree, send them the engagement letter and invoice, and onboard them. The method allows for tiered pricing packages if the practitioner wants to include them. 

These calculations are already done automatically in the TaxPlanIQ software, but the new workbook allows people to learn the method themselves. 

“We created the ROI Method of Value Pricing Excel Calculator to help firms set profitable, client-centered pricing for advisory services,” said Jackie Meyer, founder and president of TaxPlanIQ. “This tool allows firms to price with confidence and communicate value clearly.”

TaxPlanIQ was included in the AICPA & CIMA’s startup accelerator program last year. Participants received a $25,000 grant as well as marketplace intelligence and guidance from AICPA and CPA.com senior leaders and the program’s advisory board members. Last month the company hosted a virtual summit instructing people on the ROI method.