Wednesday 6 September 2023 – Earning potential for Chartered Accountants working in Leinster remains strong, with an average salary package this year of €118,578. The results of a new survey published today shows a notable increase in the average salary package of newly qualified Chartered Accountants, rising 6.6% to €62,866 compared to last year. The survey of approximately 1,000 Chartered Accountants, launched today by Chartered Accountants Ireland Leinster Society in partnership with Barden, Ireland’s leading accounting and tax talent advisory and recruitment firm, provides the most up-to-date guide to Chartered Accountant salaries and employment prospects in the Leinster region.   Strong remuneration packages The research, conducted by Coyne, shows earning potential across the profession remains strong, with €118,578 the average salary package for Chartered Accountants working across all sectors. This figure includes base salary, car or car allowance, and bonus. The remuneration package of members who qualified in the past two years increased by 6.6% from €58,967 in 2022 to €62,866 in 2023. Almost 9 in 10 (89%) of respondents overall say their total remuneration has increased in the past three years, compared to 86% in 2022. Two in five (39%) said their salary had increased by more than 25% this year. And four in five claim their total remuneration is expected to increase within the next 12 months. As part of the remuneration package, over 60% expect to receive a bonus in 2023.   The vast majority (87%) of members have a pension, with employers contributing an average 9% of their salary. After basic salary, this pension contribution is the most valued part of their package for 50% of respondents.      High job satisfaction and flexibility  Job satisfaction was high across all the metrics amongst those surveyed, with 76% of members satisfied with their work environment (73% in 2022); 68% happy with the salary they receive (62% in 2022); and 64% happy with work/life balance (unchanged on 2022). Half of respondents have been promoted in the last three years, with promotion highest amongst those working in practice at 77%.  Flexibility has become embedded as a feature of working life, with 75% of respondents employing a hybrid working model, up 2% on 2022. Only 1 in 10 respondents express concern that time spent working remotely will impact on their career progression. 7 in 10 value location flexibility, and over half of all members value flexibility in the shape of their working day (compressed hours, core hours, flexitime).  Automation and productivity The survey also shows the accounting profession is benefiting from technological advances, with 70% believing automation will have a positive impact on their career and almost half believing AI and big data will free up capacity to focus on higher-value parts of the job.  Des Gibney, Chairperson of Chartered Accountants Ireland Leinster Society, said:   “This year’s survey points to continued strong earning prospects for Chartered Accountants in Leinster. I’m particularly pleased to note the increase at the newly qualified level. This increase will play a crucial part in ensuring our profession remains attractive to the next generation – and will help us retain our top young talent in a very competitive market.   “I am also really pleased to see automation being so strongly embraced by respondents. Almost half agree that it will allow us to move further up the value chain in terms of the work that we do. This is already happening, with the work of Chartered Accountants transformed in recent years. It is really important that we communicate the breadth of opportunity in our profession to the next generation.”   Elaine Brady, Managing Partner at Barden, said: “Despite the backdrop of almost constant uncertainty over the past 12 months, the demand for accounting talent seen in 2022 continued almost unabated. Standing out from the crowd and attracting this much sought after talent is a key challenge for companies throughout Ireland. Accurate data on reward can create competitive advantage for those who choose to use it, especially in times such as these. These insights can also help businesses and hiring managers to craft competitive reward structures to aid talent retention and to understand what is required when looking to attract talent externally.  “It is also extremely interesting to see that 10% of members are working fully remotely, while 75% of members have hybrid working arrangements. Companies that mandate five days in the office have been, and will continue to be, at a significant competitive disadvantage when trying to attract accounting talent. To mandate five days in the office is to effectively reduce the talent pool available to you by 85%.” ENDS    Note to editors  The survey was conducted by Coyne Research on behalf of Chartered Accountants Ireland Leinster Society, in partnership with Barden, between 19 July and 14 August 2023.   About Chartered Accountants Ireland Leinster Society   Chartered Accountants Ireland Leinster Society is a district society of Chartered Accountants Ireland, representing over 16,000 Chartered Accountants throughout Leinster.     Chartered Accountants Ireland is Ireland’s leading professional accountancy body, representing over 32,000 members around the world and educating 7,000 students. The Institute aims to create opportunities for members and students, and ethical, sustainable prosperity for society. An all-island body, Chartered Accountants Ireland was established by Royal Charter in 1888 and now has members in more than 90 countries.     It is a founding member of Chartered Accountants Worldwide, the international network of over one million chartered accountants. It also plays key roles in the Global Accounting Alliance, Accountancy Europe and the International Federation of Accountants.     Chartered Accountants Ireland members provide leadership in business, the public sector and professional practice, bringing experience, expertise and strict standards to their work for, and with, businesses in every sector. Chartered Accountants Ireland engages with governments, policy makers and regulators on key issues affecting the profession and the wider economy.   About Barden Barden is a partner led talent advisory and recruitment firm consumed with supporting companies that really know the value of their people. Barden’s expertise covers Accounting, & Tax, Business Support, Financial Services, Legal, Life Sciences, Supply Chain and Technology talent advisory and recruitment. Chartered Accountants specifically choose to join Barden in order to use their qualification in a different way.   Barden has proudly partnered with the Chartered Accountants Ireland Leinster Society, for the last seven years, to bring you the annual salary survey. Barden also works closely with Chartered Accountants Student Society of Ireland (CASSI) and Young Professionals to make sure their members get access to the right information, at the right time in order to make more informed decisions about their professional future.  

Strong employer demand and higher earning potential for accountants    Accounting bodies congratulate Leaving Cert class of 2023; welcome 27% increase in those taking accounting in last five years    Friday 25 August – The body representing professionally qualified accountants in Ireland has said it is vital that accountants remain on the government’s Critical Skills Occupations List. Its call comes as it responds to the Department of Enterprise, Trade and Employment’s public consultation to review the eligibility of occupations on this list. The list is subject to regular review to ensure it reflects shortages of critical skills required for the proper functioning of the Irish economy. The Consultative Committee of Accountancy Bodies - Ireland (CCAB-I) is the representative committee for Chartered Accountants Ireland, the Association of Chartered Certified Accountants (ACCA), the Institute of Certified Public Accountants in Ireland (CPA Ireland) and the Chartered Institute of Management Accountants (CIMA). Its 43,500 members work across industry, professional practice, and the public sector. Commenting, Crona Clohisey, Tax & Public Policy Lead, Chartered Accountants Ireland said, “The accountancy profession plays a pivotal role in delivering professional services and advice to all sectors of the Irish economy, but presently most firms in which CCAB-I members operate have active vacancies that they are unable to fill. There is a critical shortage of accountants with audit experience; and a deficiency of accountants with practice experience of all types, including tax, data analytics, consultancy, and sustainability.  “The accountancy profession plays a pivotal role in delivering professional services and advice to all sectors of the Irish economy, but presently most firms in which CCAB-I members operate have active vacancies that they are unable to fill. There is a critical shortage of accountants with audit experience; and a deficiency of accountants with practice experience of all types, including tax, data analytics, consultancy, and sustainability.  “In the larger firms in particular, over half of new recruits filling vacant positions for experienced hires are currently being sourced from non-EEA countries due to a significant shortage of suitably qualified EEA-based candidates. Therefore, the inclusion of accountants on the Critical Skills Occupations List helps to meet ongoing capacity shortages.”  CCAB-I notes that the problem will be compounded by global trends and challenges. The Corporate Sustainable Reporting Directive (CSRD) will bring all quoted and large companies (as defined) within scope of a new set of sustainability reporting and assurance requirements from 1 January 2024. In addition, Ireland is bidding to host the new European AMLA (Anti-Money Laundering Authority), and if successful, there will be a considerable demand for accountants with AML and Combatting Terrorist Financing (CTF) skills. Building the talent pipeline CCAB-I is engaged with the National Apprenticeships Office (NAO) on the potential creation of a new national professional accountancy apprenticeship to facilitate the entry of school leavers into the profession on an “earn and learn” basis. It is also liaising with the Department of Education on the reform of the outdated Leaving Certificate accounting syllabus as part of wider efforts to attract candidates into the profession.  There are 16,500 students studying to become accountants in businesses and firms around Ireland, and in addition to strong demand from employers, there is continued strong earning potential, with newly qualified Chartered Accountants receiving an average salary package of €58,967 in 2022. Commenting Brian Feighan, Chair of the CCAB-I Working Group on Leaving Certificate Syllabus Reform said;  “Looking at the results for Leaving Certificate Accounting, it is really encouraging to see a 27% increase in those taking the subject since 2018, and an increase in those taking higher level. But this increase in popularity at second level is not feeding through to sufficient take-up of places on accounting courses in third level and further education.  “We have long highlighted that students are being dissuaded from pursuing accounting as a career choice because of the outdated Leaving Certificate accounting syllabus. We are engaged with the Department of Education to prioritise the introduction of a new specification for Leaving Certificate Accounting which will better reflect the role of the accountant in today’s workplace.  “A huge amount of work is being done by the CCAB-I at second level to attract students into the profession. I would say to students receiving their exam results (and their parents), that employer demand for accountants is extremely strong. Salary levels for qualified accountants reflect this demand and the vitally important roles that accountants perform in all organisations. There have never been more ways to enter the profession, be it directly from school, or after third level. This demand continues to grow and so too does the range of opportunities.” Read the CCAB-I submission in full here.

Revenue has published a Tax and Duty Manual which highlights further changes to the 2022 income tax return (2022 ROS Form 11).  The changes include a workaround, advocated by CCAB-I, to enable the filing of the 2022 Form 11 where rental income is paid to non-resident landlords and there is no collection agent, or the tenant has not withheld tax from rent paid.  Other changes include pre-population of certain PSWT information, a new sub-panel to claim the rent tax credit as well as updates to the tax credits panel to reflect increased values, warning messages and some changes to the EII, SURE and SCI sub-panels. The 2022 ROS Form 11 has been available since 1 January 2023 but is updated on an ongoing basis to include additional prepopulated information from third parties.  Readers are reminded that there is no ROS offline version of the 2022 Form 11 but it can be prepared offline using the Return Preparation Facility (RPF). Further information is available in eBrief No.177/23.  Revenue’s Tax and Duty Manual – A Guide to Self-Assessment- has also been updated at paragraph 4 to reflect the available online payment options.

The Financial Reporting Council (FRC) has launched a consultation on revisions to the Ethical Standard. The proposed revisions enhance prohibitions where an audit firm's independence could be threatened. There are also changes proposed to reflect findings from audit inspections and enforcement cases, as well as changes to reflect developments in the International Ethics Standards Board for Accountants (IESBA) since the FRC last revised the standard in 2019. The consultation remains open until 31 October 2023.

The International Auditing and Assurance Standards Board (IAASB) has issued its proposed International Standard on Sustainability Assurance (ISSA) 5000, General Requirements for Sustainability Assurance Engagements. This proposed standard will now undergo a consultation period running until 1 December 2023 and stakeholders are encouraged to respond and share their feedback to the proposed standard. ISSA 5000 is a principles-based, overarching standard suitable for both limited and reasonable assurance engagements on sustainability information reported across any sustainability topic. It is intended to work with various sustainability reporting frameworks (including the European Sustainability Reporting Standards and the IFRS Sustainability Disclosure Standards). The standard is drafted as a profession agnostic standard and should be suitable for use by accountant and non-accountant assurance practitioners. With the sustainability reporting requirements for certain entities set to increase over the coming years, a standalone sustainability standard is seen as a key piece of the framework to help ensure that users of sustainability information can place greater trust in the information they are consuming on an entities Environmental, Social and Governance impacts. In launching the consultation, IAASB Chair Tom Seidenstein commented “Our proposed ISSA 5000 is a crucial step in enhancing confidence and trust in sustainability reporting. This proposal directly responds to the International Organization of Securities Commissions recommendations and complements the work of other standard setters, including the International Ethics Standards Board for Accountants,”. The comment period remains open until 1 December and the IAASB are seeking a broad range of views on the standard to gather the views and insights needed to finalise it.

Julia Rowan answers your management, leadership and team development questions I am an experienced manager who is comfortable with delegating work and trusting my team to get on with it. This allows me to keep a strategic focus. I moved to a new organisation recently and find that my manager and other senior leaders expect me to have detailed knowledge of the work of my direct reports. I do not want to get sucked into operational detail. How do I stay high level while keeping my seniors happy? I always put options on a continuum of ‘do nothing’ (i.e. comply) to ‘the nuclear option’ (i.e. leave), and then identify the options in between.  Before you begin, reflect carefully on what is important for you so that you can shape a clear and positive message. Watch the language – are you ‘getting sucked into the operational detail’ or ‘on top of the data’? My guess is that this is a cultural issue, and if you want to effect change, you need to remain credible. Reflect on what the seniors need: do they need you to have information at your fingertips to save them time? To make important decisions? Are there trust issues around work done by more junior people? Is there something else?  Working this out will help you to meet seniors where they are (not where they ‘should’ be). Ask your manager for their support in meeting expectations while contributing at a higher level (focus on both/and rather than either/or). Bring the same question to your team and get their input and solutions. Reflect on your own expectations – you may need to give a little.  Identify the colleague who navigates this most effectively – ask them how they do it. Build the profile of your team: bring them to meetings. Find a reason to host an event at which your team members share their insights, demonstrate their capabilities and build relationships with your seniors. There may be practical solutions. Could you contact seniors before meetings to check if there are issues they want to discuss? Maybe you could create a shared folder where updated information is posted (either so that you can access it quickly – or colleagues can access it). There are a few options in between. There are many more. Just be open to looking for them. Two colleagues who don’t get on keep trying to drag me into their issues. I feel caught in the middle. In such cases, tapping into our sincerity often gives us the clarity and courage to address tough issues. My guess is that you want to support both without siding with either. Imagine one of your colleagues is sitting in front of you. What would you most like to say? It might be “I am uncomfortable as I feel stuck in the middle” or “That sounds difficult. How can I help you to address this with him?” or “It can be hard to work with someone whose style is so different”.  Try it and see what comes out. Then whittle that down to a sincere and helpful response. Julia Rowan is Principal Consultant at Performance Matters Ltd, a leadership and  team development consultancy. To send a question to Julia, email julia@performancematters.ie.

Audit committees face increasingly complex risks in modern business, according to the latest KPMG survey. Arlene Harris speaks to Niall Savage about the four main risks and how committees can mitigate them KMPG recently published the results of its Global Audit Committee (AC) Institute survey, which collates the views of 768 AC members and chairs, of which 31 were operating in Ireland.  Niall Savage, Partner and Head of Audit Markets at KPMG, says the survey results indicate that, while it may seem at odds with its traditional role, the AC and its members continue to have a “bellwether role for the business as they scan the risk horizon”.  Consequently, ongoing geopolitical issues, cyber threats, the rise of artificial intelligence (AI) and considerations around environmental, social, and governance (ESG) will remain top of the AC agenda in the coming months. “The traditional and essential role of an AC is overseeing the numbers, controls and, as its title suggests, the audit process – both internal and external,” he says. “So its priority is more in the monitoring than the advising. This work is critical for ensuring financial transparency, confidence and compliance but does not encompass the broader aspects of business. “However, given the typical composition of the AC, the external non-executives with wide-ranging experience, the effective AC Chairperson draws upon the insights of their members to identify and advise on risk areas and strategies to address them.  “The findings suggest that the things driving the agenda of the AC are big-picture risks that underpin their organisations’ strategies. And four key themes – geopolitical, cyber, AI and ESG – were identified as foremost in the minds of AC members.” Indeed, these four themes don’t come without challenges, but there are ways in which ACs can navigate them in their role, supporting the board and management. The effects of risk on the market “Volatility by its nature creates uncertainty in the market, making it difficult for businesses and their stakeholders to make strategic operational and investment decisions,” says Savage. “For example, consumer sentiment in uncertain times can fall rapidly, with non-essential purchases frequently deferred, impacting large parts of the consumer market and leisure industries. “Geopolitical volatility can also undermine investor confidence, cutting off access to finance and creating barriers for businesses through restricted access to markets, currency fluctuations and shifts in trade policies. There is also a heightened risk of supply chain disruption.” In the last 12 months, ACs have been faced with:  post-lockdown uncertainty, which is driving cashflow forecasts (and risks) of how to meet consumer demands; geopolitical conflicts, such as the Russian invasion of Ukraine, necessitating a rapid response to secure the safety of people and assess the impact on the business in addition to instability in Latin America and the Middle East; rapid and often unexpected inflation across energy, wheat and other commodities, which created unforeseen risks of business failure if these could not be passed on easily; increased interest rate rises and global financial market fluctuations in response to inflation, which changed base case forecasts for investment decisions, funding, and potentially going concerns; ongoing global trade tensions, including those between the US and China, with increasing tariffs, which had ripple effects on global supply chains; and the fallout from COVID and Brexit, which continued to affect the global economy. Geopolitical risks “It is difficult to predict what the next 12 months have in store, but some key actions for AC members to manage these risks include engaging with management and stakeholders to understand their assessment of geopolitical risks and existing strategies to mitigate those risks, and asking management to provide timely updates on geopolitical developments and the organisation’s risk mitigation efforts,” said Savage.   “Also, understanding the geopolitical risks that can impact the organisation and monitoring global political developments, regional tensions, trade disputes, regulatory changes and other geopolitical factors that may have implications for the organisation. “And, staying informed about current events and diplomatic developments that can impact the organisation’s operations – along with knowing if the organisation is especially exposed to certain regions or risks, should the AC consider recruitment or training to ensure that they have the expertise to address any challenges they face, is also important.” Savage also suggests assessing an organisation’s exposure to geopolitical risks, understanding management’s approach to contingency planning, and understanding the full list of regulatory compliance requirements and whether the organisation has processes in place to identify, monitor and adhere to applicable regulations.  ACs must also consider with management the need for scenario planning to model impact and respond to geopolitical events. Cyber risks Advances in modern technology have also brought about a growing number of cyber threats, and in the past 12 months, many Irish businesses and organisations have reported data leaks and thefts as cybercriminals become more sophisticated and professional in their approach to both getting access to systems through ransomware and social engineering but also monetising this access.  As firms try to protect themselves from this, the list of targets and potential weaknesses continues to grow with the proliferation of the internet of things (IoT), which may not have the same level of security and is, therefore, easier to compromise. “For those engaged in public work, there is an additional political dimension and risk to cybercrime with nation state targeting for political gain, which has seen recent coverage of European Commission staff removing certain apps from their phone restrictions on Telco suppliers due to concerns over security,” says Savage. “But there are some essential actions that ACs can take, which include understanding the cyber risk landscape, the type of threats it faces, potential vulnerabilities and the impact of a cyber incident.  “They can also evaluate the organisation’s cybersecurity governance and strategy while focusing on risk assessment, incident response, training and vendor competence. It is important to be informed – stay on top of cybersecurity initiatives and maintain open lines of communication to address any concerns or gaps identified.” He would also encourage organisations to consider engaging external cybersecurity experts or conducting independent audits/penetration testing to assess the effectiveness of these controls, to ensure the AC is informed of cybersecurity incidents and evaluate the organisation’s response and promote cybersecurity awareness through training and incident reporting and ensure that appropriate cybersecurity risk reporting mechanisms are in place. AI risks The advent of AI has brought a new set of risks to business. “Although long discussed and the subject of many films (Terminator 2 springs to mind), the potential impact of AI really hit home late last year with the launch of ChatGPT, which was quickly followed with spectacular claims of cost savings, entire professions wiped out and of course the danger of ‘the rise of the machines’,” says Savage. “Clearly, there are significant risks and opportunities for businesses and ACs to deal with, many of which are ‘unknown unknowns’ to combat this and assess risk.” In the face of this new business landscape, “ACs should understand the concerns and opportunities for people, customers, suppliers and regulators. They should try to understand how best to get the right level of knowledge, evaluate the existing risk management framework to assess whether additional controls are needed, consider policies around the implementation and use of AI and review critical AI implementation projects.” ESG risks The final issue Savage addresses is ESG, which he says has been an “alphabet soup of regulation” for the past few years – and KPMG research indicates compliance with standards is only one of the ESG risks occupying the minds of AC members.  “There is a broader menu of risks to consider, which impact reputation, performance and financial success,” he says. “Failure to address these can lead to reputational damage and financial implications. So, AC members should consider the potential reputational risks associated with the company’s ESG performance and how they are managed. Climate change risks can impact the value of assets, and non-compliance can result in fines or penalties.”  To address these risks, it is important for ACs to understand and work closely with all stakeholders including management and internal auditors. Areas of focus should: ensure the AC has the necessary expertise to effectively assess ESG risks – this may involve recruiting or training existing committee members; engage with investors, regulatory bodies and industry associations to understand their expectations and perspectives on ESG; develop a list and understanding of ESG risks relevant to the company across climate change, labour, data and inclusion and diversity; review how data is currently captured and analysed and how reporting is verified; look at the existing risk management practices and policies and assess the key controls and how the risks are currently monitored and reported; benchmark these to peer groups and industry standards to ascertain whether they align with recognised frameworks; and seek regular updates on ESG initiatives and consider external assurance on related reporting.  “There are more insights to the survey, and it is interesting to benchmark different priorities across the regions, priorities around finance team talent, the need for in-person time with management and a focusing agenda to maximise effectiveness,” says Savage. “However, by elaborating on and identifying some common-sense actions on the four critical themes – geopolitical, cyber, AI and ESG – we have supported AC members for the next, hopefully, less volatile, 12 months.”  

The NATO summit was not only about Ukraine. It was about the role of the past and how it affects NATO and the EU, writes Judy Dempsey By the time you read this, we’ll have all moved on from the NATO summit that took place in the Lithuanian capital of Vilnius in July towards other persistent topics.  There’s Ireland’s housing crisis; the worry that Donald Trump might beat President Joe Biden in the 2024 election for the White House; and Russia’s continuing war against Ukraine, to name a few. The list is long. But a common threat runs through these issues: the enduring role of the past and how societies in the 21st century have to deal with it. The past is a compass. It offers the way to the future if there is a political willingness to deal with history. The past can also be distorted.  That sense of the past was clear when attending the NATO summit.  The summit’s conclusions fell short – for some, way too short – by failing to offer Ukraine membership of the US-led military alliance once the war was over.  Lithuania and the other two Baltic States, Estonia and Latvia, but also Poland and the Czech Republic, were disappointed. They believed that Biden and German Chancellor Olaf Scholz, who led the opposition against a membership date, did not have the political courage or historical compass to offer Ukraine at least a timetable.  The bottom line is that, for different reasons, this decision was about Russia.  Biden, who is facing re-election and simmering unpopularity with American support for Ukraine, does not want to drag NATO into a direct confrontation with Russia. Germany thinks the same but is not committed to admitting Ukraine to NATO. Yet, this war has given Germany a big chance to lead Europe and create a strong NATO caucus inside the alliance. Germany demurred.  This brings us to Lithuania.  It has been a staunch ally of the Belarussian opposition and an unremitting supporter of Ukraine. For Lithuania, it is about Kyiv defeating Russia. But it is more than that. Lithuania and the other Baltic States see the war in Ukraine through the prism of Russia but in a special way, distinct from Western Europe.  For Lithuania, this is about Russia trying to regain control over the countries of Eastern Europe, which include not only Ukraine but also Belarus, Moldova, Georgia and Armenia.  Lithuania also sees Russia aiming to create a new cordon sanitaire between the EU/NATO countries and Eastern Europe – a kind of updated version of the Cold War divisions of Europe.  In the view of the Central Europeans, Russia’s imperial ambitions must be stopped. Eastern Europe must not be turned into a grey Russian-controlled zone. The prospects for instability would be too high and dangerous. Germany and the United States, for their part, see the war in Ukraine through the prism of Russia as a nuclear power and threat – as if Russia is not already threatening the security of Europe. They do not see it in terms of the past but in terms of realpolitik. For Central Europe, the past is the legacy of the violent Soviet occupation of the region that must not be repeated in Ukraine.  The past for Western Europe is how, with huge American support, today’s EU was built. It was a peace project constructed upon the ruins of World War Two. This peace project is now being challenged by Russia. The war in Ukraine is about two different European narratives. It is time to reconcile them.  Judy Dempsey is a Non-Resident Senior Fellow at Carnegie Europe and Editor-in-Chief of Strategic Europe  

As we approach the final months of 2023, three Chartered Accountants take a moment to contemplate the hurdles Ireland has surmounted and share their aspirations for the remainder of the year Sinéad Nolan Financial Accountant AXA Insurance The economy is fine on paper (GDP and domestically); however, housing is a major issue, in both affordability and availability. The cost-of-living crisis is only exacerbating a problem that was already there for young professionals starting off their careers. Paying rent is a continuous challenge, as is looking for an affordable house to purchase. The interest rates keep rising, and house prices don’t seem to be reducing. Many in the country felt the challenge of paying bills in the wintertime. On top of that, there has been a lot of uncertainty with the war in Ukraine.  On the plus side, there has recently been slight moderation in the price of energy and in inflation, and the pleasant weather in June was a bonus! (Less pleasant in July, admittedly.) Also, the unemployment rate in the Republic of Ireland fell to a record low of 3.8 percent in May. To help, my employer has hosted many financial wellness webinars, which, given the current economic crisis, have been great.  We also received a well-being day off, not to mention personal interaction is happening in the office again – we are attending social events, which is brilliant.  As for the rest of the year, I hope the housing crisis settles, and there is more support given to first-time house buyers from the Government. I joined the Young Professionals Committee in July after attending the wonderful Pride BBQ in June. I am looking forward to organising and hosting events, and connecting with other members of the Institute. The Young Professionals Committee is a great networking platform, so I am very excited to get stuck in with it. Jim Stafford Consultant Friel Stafford I work every day at the coalface, advising companies and individuals who are dealing with financial challenges, and thus I appreciate the issues facing the economy.  While there is an economic brew of uncertainty caused by inflation, geopolitical issues, etc., the biggest impact we have seen this year has been the dramatic increase in interest rates, which has shaken some people to the core.  We have observed a noticeable increase in Members Voluntary Liquidations from businesspeople who are deciding to ‘cash in their chips’ now rather than face future uncertainty.   One of the positives that I have always enjoyed when working with people under financial pressure is recognising the levels of resilience people have. On the ‘resilience spectrum’, I am delighted to see some clients who bounce back stronger than ever.   The highlight for me personally this year was the sale of Friel Stafford to Ifac, which will enable us to provide restructuring services such as the Small Company Administrative Rescue Process (SCARP) across Ifac’s 30+ offices.  The association with Ifac has moved us into the top ten accountancy firms in Ireland, which has opened the doors to certain types of work, making it easier for us to attract and retain talent.  A big development during the year was the growth of artificial intelligence (AI). While there is great potential for generative AI to change the workplace, there is also huge scope for more sophisticated fraud.  Looking to the year ahead, a big challenge for some businesses will be the ending of the Revenue warehousing scheme, which was a valuable lifeline for many.  We expect to see an increased number of SCARPs next year.  Another big challenge for some firms will be the Companies Registration Office and the Corporate Enforcement Authority increasing their enforcement activity on companies that are struck off. Gordon Naughton  Chief Executive Officer Tactive   January represented a strange and uncertain time for the Irish and global economy. Many initiatives were placed on hiatus due to significant inflationary, economic and geopolitical concerns.  In January, it was startling to see how quickly the mood had shifted from November and December. Since then, the business community and consumers have learned to live with these concerns and are in a positive state of mind.  Currently, the Irish economy is showing tremendous resilience, with the overall tax intake and consumer spending being unexpectedly high. It seems the country is forging ahead. However, if the past three years are a barometer for future challenges, predicted and day-to-day issues tend to be easy to deal with. It’s the unpredicted challenges that can pose the most difficulty.  My key lesson from this period is that businesses need to be agile, efficient and have contingency plans for the three main ways an economy can move – up, down or steady on.  Luckily, I have great clients, a good support structure and network that has brought me through any uncertainty. I am so lucky to work from home and spend time with my wonderful family.  Continuous learning is a facet of my life, as I simply like reading and expanding my knowledge. This year I obtained a black belt in Lean, which has helped me professionally and personally.  As for the rest of 2023, I hope to continue to work with outstanding clients.   

The Digital Services Act aims to better protect users in the online world, but its requirements will impose many new obligations on service providers, say Mary Loughney, Shane O’Neill and Filipa Sequeira The increased use of digital technology dramatically raises the chances of end users being exposed to illegal or harmful online content. Regulations and laws are catching up with the fast-paced world of emerging digital services and online platforms to ensure online services’ security, accountability and openness.  The Digital Services Act (DSA), an EU regulation, aims to modernise the digital landscape and defend users’ rights. What digital services does the DSA cover? The DSA encompasses a broad range of online intermediaries, including internet service providers, cloud services, messaging platforms, marketplaces and social networks.  Hosting services, such as online platforms (a hosting service provider that “stores and disseminates to the public information, unless that activity is a minor or purely secondary feature of another service”), social networks, content-sharing platforms, online marketplaces and travel/accommodation platforms, have specific due diligence obligations.  The DSA’s most significant regulations target very large online platforms, with a substantial societal and economic impact reaching a minimum of 45 million EU users, representing 10 percent of the population.  Similarly, very large online search engines with over 10 percent of the EU’s 450 million consumers will have greater responsibility for combating illegal content on the internet. Key provisions of the DSA The DSA outlines specific responsibilities for online platforms, including big platforms, intermediaries and hosting service providers.  Due to their significant societal impact, the Act introduces categories called Very Large Online Platforms (VLOP) and Very Large Online Search Engines (VLOSE), which are subject to stricter regulations and audit requirements.  An independent audit must cover all the obligations imposed on VLOPs and VLOSEs by the DSA, including the duties to remove illegal content, provide users with transparency about how their data is used and prevent the spread of disinformation.  The following focus areas are central to the DSA’s requirements: Due diligence around safety and content moderation: The DSA lays out guidelines to address illegal content, such as hate speech, terrorist propaganda and fake goods. Online platforms must set up efficient content moderation systems and offer ways for users to report unlawful content. This may involve using automated tools for detection and removal. User rights and transparency about terms of service, consent, algorithms and advertising practices: Companies must offer more transparency about how their platforms operate, including their terms of service, algorithms and advertising practices. This will help users to understand how their data is being used. Users’ ability to control their privacy settings and flag harmful content: Companies must provide users with tools to manage their privacy settings and flag harmful content. This will help users to protect their personal data and keep themselves safe online. Companies are also required to respond to flagged content within a reasonable timeframe. Measures to prevent the spread of disinformation: Companies must take steps to prevent the spread of disinformation, such as by labelling sponsored content and providing users with access to reliable information. This may involve working with fact-checking organisations or other companies to share information about disinformation. Accountability for the content hosted on platforms: Companies must be accountable for the content hosted on their platforms. This means they must be able to remove illegal content promptly and co-operate with law enforcement authorities. With these provisions in mind, a sensible place to begin your journey may involve conducting a maturity assessment using a risk-based approach so the organisation is aware of the risks that require mitigation: Maturity assessment: The risk assessment should consider a range of factors, such as the nature of the platform, the type of content hosted and the potential for harm to users. Address DSA requirement gaps: As a result of the risk assessment, organisations should identify their exposed risks and implement necessary measures, which include enhancing content moderation tooling, increasing transparency and enabling more robust end-user control mechanisms. Compliance reporting: Organisations would be required to comply with third-party external audits. While that audit would evaluate the platform’s systems and processes, compliance reporting may also include information on overall risk mitigation efforts. The challenging aspects of the DSA’s audit requirements To ensure compliance with the DSA’s provisions, digital service providers, predominantly VLOPs and VLOSEs, will be subject to independent audits. The audit must be conducted in accordance with the methodology and templates established in the delegated regulation, and the audit should review whether the VLOP or VLOSE: has a clear and transparent policy on how it addresses illegal content; has a system in place for detecting and removing illegal content and preventing the spread of disinformation; and provides users with adequate transparency about how their data is used. The audits will evaluate the platform’s efforts to deal with illegal content, the openness of content moderation procedures, adherence to DSA requirements, and the efficiency of user reporting mechanisms. The platform’s practices for data security and privacy will also be examined.  It will be challenging for online intermediaries to comply with some DSA requirements.  Accurate classification of digital services The DSA distinguishes between different types of digital services, such as intermediaries, hosting services and online platforms. Assigning the correct classification to a specific service can be complex, especially for hybrid platforms with multiple functionalities. Accurately defining the obligations and responsibilities associated with each classification requires careful analysis. Removing illegal content in a timely manner The DSA requires the removal of unlawful content in a timely manner after being made aware of its existence. Implementing effective content moderation mechanisms while respecting freedom of expression and avoiding over-removal or under-removal of content is a complex task. Developing sophisticated algorithms and human review processes to strike the right balance poses significant technical and operational challenges.  Further transparency about how content is moderated  The DSA requires more transparency about how online intermediaries moderate content. This includes providing information about the criteria used to moderate content, the processes used to make decisions and the appeals process available to users who flag moderation issues.  It can be difficult to require online intermediaries to disclose sensitive information about their internal operations. Additional steps to protect users’ privacy rights  The DSA requires additional steps to protect users’ privacy and enhance users’ rights. This includes transparency, user control over content and redress mechanisms.  These new provisions can be challenging to implement as they require online intermediaries to change their business practices significantly.  Implementing user-friendly interfaces and operative-complaint resolution mechanisms to ensure seamless user experiences can be technically complex and resource intensive. Compliance with new rules on targeted advertising  The DSA introduces new rules on targeted advertising. These rules prohibit online intermediaries from using sensitive personal data to target users with ads, and they require online intermediaries to give users more control over the ads they see.  Co-operation with authorities The DSA emphasises co-operation between platforms and regulatory authorities.  Ensuring information sharing, responding to legitimate requests and establishing effective communication channels with various national authorities across the EU pose many challenges. Maintaining confidentiality and data protection while complying with these requirements can be tricky. Interpretation of the DSA The interpretation of the DSA may evolve as it undergoes the legislative process. As such, there are themes associated with how one might expect an audit will be conducted: Transparency: The audits must be conducted transparently. Accountability: The audits are designed to ensure that VLOPs and VLOSEs are accountable for compliance with the DSA. Effectiveness: The audits must effectively identify and address any compliance gaps. Proportionality: The audits must be proportionate to the size and complexity of the VLOPS and VLOSEs. Flexibility: The delegated regulation allows auditors to adapt the audit methodology to the specific circumstances of the VLOP or the VLOSE. These are just some specific requirements that are tricky and complicated to implement. However, the DSA is essential to creating a safer and more accountable online environment. Best practice The table above displays exemplary and tactical actions that could be considered when enhancing users’ privacy rights and transparency about terms of service, consent, algorithms and advertising practices. In addition to these specific steps, companies should consider implementing several general best practices: A well-defined risk management framework: Establishing ongoing risk assessment activities will help companies identify and mitigate user risks. A culture of compliance: This will help ensure that all stakeholders are aware of the DSA requirements and committed to complying with them. A robust process for responding to incidents: This will help companies to respond quickly and effectively to any incidents that may arise. An oversight process for monitoring and reporting on compliance: This will help companies track their progress and identify areas where they may need to improve. A trustworthy online environment The DSA represents a significant step toward regulating online platforms and digital services within the EU. By introducing audit requirements, the DSA enhances transparency, accountability and user protection in the digital world. Independent audits will serve as a mechanism to ensure compliance with the DSA’s provisions, thereby fostering a safer, fairer and more trustworthy online environment. Mary Loughney is Director and Head of Technology Risk Consulting at Grant Thornton  Shane O’Neill is Partner and Head  of Technical Change, Financial Services Advisory at Grant Thornton  Filipa Sequeira is Senior Consultant of Financial Services Advisory at Grant Thornton

Recent European heatwaves have highlighted the impact climate change has on society and the economy. Susan Rossney explores the challenges facing Irish businesses when taking steps to tackle the crisis Recent severe heatwaves in continental Europe have shown how the effects of global warming are coming ever closer to home. Forced migration, drought, forest fires and biodiversity loss are some of the many ways climate change will impact Irish society.  Its impact on the economy will be acute, affecting everything from the health and wellness of employees to the cost of raw materials, scarcity of resources and supply chain disruption.  Ireland and climate change Climate change poses risks to humans, nature and Ireland as a nation.  Ireland is legally bound to meet ambitious national and international climate targets. According to the Climate Change Advisory Council (CCAC), an independent advisory body, Ireland will not meet the climate targets it has set for itself in the first and second carbon budget periods. The Environmental Protection Agency’s (EPA) provisional estimates on 2022 greenhouse gas emissions show that Ireland already used 47 percent of the carbon budget for 2021–2025 in the past two years.  An annual reduction of 12.4 percent is now required for each of the remaining years if Ireland is to stay within budget.  However, as emissions fell only 1.9 percent in 2022, this has been described as “extremely challenging” by the EPA.  It is clear that action is required across all sectors of the economy and society, including: Mitigation: reducing activity that causes climate change, like burning fossil fuels (coal, oil and gas); and Adaptation: making changes to deal with the effects of climate change, from operational changes to cope with rising summer temperatures or winter flooding to factoring in the risk of developing stranded assets and increased carbon tax liabilities. Ireland’s perception of climate change According to Climate Change in the Irish Mind, EPA research conducted in 2021, most Irish citizens share a desire for action on the climate crisis.  However, other EPA research has found that our emissions of greenhouse gases (GHGs) continue to rise.  Environmental Indicators Ireland 2022, published by the Central Statistics Office (CSO), shows that Ireland’s 2022 emissions were 11 percent higher than in 1990.  Enterprises contributed an estimated 12.7 percent to Ireland’s overall emissions in 2018, according to the Climate Action Plan 2023. Although this is less than the contributions of other sectors, there remains a need for Ireland’s enterprises to take action to reduce their emissions.  However, a 2022 national survey of 380 SMEs and larger enterprises across industry and service sectors by Microsoft and University College Cork found that Irish businesses are underprepared to make the necessary changes to transition to a net zero future. According to the study, 86 percent have no commitments or targets to decarbonise.  Barriers to action  In the face of evidence of climate change – and Ireland’s willingness to take action – what is preventing Irish businesses from responding to the crisis?  As an issue, climate change is complicated, abstract and overwhelming. Multiple interdependent factors cause it, and it is nearly impossible to avoid contributing to it in our daily lives. Buying products, driving a car or taking a flight for a foreign family holiday (full disclosure: I’m just back from one) all add to the overall problem. The solutions to the climate crisis are also interdependent and complicated. The positive changes we can make as individuals can feel insignificant, especially compared with large countries’ continued pollution.  The European Commission’s Annual Report on European SMEs 2021/22 – SMEs and environmental sustainability identified access to finance, limited expertise and skills, and regulatory and administrative barriers among the challenges facing SMEs in particular. Businesses that want to take climate action often have limited time, cash flow, resources and support (both financial and non-financial) to take action.  Knowledge is also a barrier. Many professionals qualified at a time when climate change was not identified as a business risk. They now find themselves having to skill up mid-career in an area that is famous for changing frequently.  Finally, many citizens and businesses are still struggling with crises related to COVID-19, inflationary pressure, supply chain disruption and high energy costs. Staying afloat is a crisis in itself.  Firms, particularly SMEs, focusing on the practicalities of running a business, paying staff and grappling with cash flow and costs are more likely to see climate action as the responsibility of governments or, at the very least, large corporations rather than them.  On top of that, climate discussions are often politicised. They are regularly reduced to a ‘them vs us’ polarised debate in mainstream media rather than discussing how everyone can work together to deliver solutions.  Threats and opportunities  For businesses, climate change presents both threats and opportunities.  Threats The threats have been categorised as physical risks (both ‘acute’ and ‘chronic’) and transitional risks.  Opportunities  Taking action on the climate crisis enables businesses to restore lost ecosystems, improve air quality, community health and well-being, and avail of the opportunity to make a lasting positive impact. There are additional advantages to consider: Reduced costs – the Sustainable Energy Authority of Ireland (SEAI) estimates that the average SME can save up to 30 percent on its energy bill by becoming more energy efficient (improved heating and lighting, lower maintenance of electric vehicles, efficient water and materials management and using recycled materials with a lower climate impact all contribute to lower costs);  Reduced reliance on exposure to fluctuating oil and gas prices from switching from fossil fuels (coal, oil and gas) to renewable energy sources; Reduced exposure to carbon tax, which is increasing €7.50 per tonne to €100 per tonne in 2030; Access to grants, allowances and tax reliefs; Improved access to capital and finance from investors and lending looking to ‘green’ their portfolios; and A competitive edge in attracting talent, clients and customers. Steps to climate action Businesses looking to take action on the climate crisis can take several steps: Build your knowledge. There are many resources out there, several provided by the Government and Chartered Accountants Ireland. Begin measuring emissions with tools like the Government’s Climate Toolkit for Business.  Consider an internal energy audit to find ways of reducing your carbon footprint. SEAI maintains a list of registered energy auditors and offers SMEs a €2,000 voucher towards the audit cost. Consider setting up an internal environment and climate impact team to devise a decarbonisation plan.  See also the Sustainability Glossary in the Sustainability Centre of the Chartered Accountants Ireland website.  For more, see www.charteredaccountants.ie/sustainability-centre/sustainability-home Susan Rossney is Sustainability Officer at Chartered Accountants Ireland Reporting and climate change The Corporate Sustainability Reporting Directive (CSRD) is an EU Directive requiring certain companies to disclose information on sustainability-related impacts. It proposes significant changes to how entities report on their business’s environmental, social and governance (ESG) impacts. These changes will affect many enterprises – directly and indirectly.  Businesses ‘in scope’ of the CSRD are required to consider their supply chain when reporting on sustainability matters. This will mean that companies not in scope that form part of a supply chain may be asked to provide climate-related information by companies in scope. Small companies should prepare for this and have a mechanism to measure and disclose their carbon emissions. For more on the CSRD, see the Chartered Accountants Ireland Technical Hub. Dee Moran is Professional Accountancy Lead at Chartered Accountants Ireland  

Michael Diviney and Níall Fitzgerald explore the ethical challenges arising from artificial intelligence (AI), particularly ‘narrow’ AI, and highlight the importance of ethics and professional competence in its deployment Earlier this year, artificial intelligence (AI) industry leaders, leading researchers and influencers signed a succinct statement and warning: “Mitigating the risk of extinction from AI should be a global priority alongside other societal-scale risks such as pandemics and nuclear war.” Was this a publicity stunt? Well, probably not, as the generative AI ChatGPT was already the fastest-adopted application in history.  Was this an over-the-top, alarmist statement by a group possibly trying to steal a march on self-regulation of a rapidly emerging technology and growing industry?  Again, this is unlikely if one considers the warnings of pioneer thinkers like Nick Bostrom, Max Tegmark, Stephen Hawking and Astronomer Royal Martin Rees. They concur that there is an existential threat to humankind if human-level or ‘general’ AI is developed and the ‘singularity’ is reached when AI surpasses human intelligence.  Autonomous weapons and targeting are a clear risk, but more broadly, unless we can ensure that the goals of a future superintelligence are aligned and remain aligned with our goals, we may be considered superfluous and dispensable by that superintelligence.  As well as the extinction threat, general AI presents other potential ethical challenges.  For example, if AI attains subjective consciousness and is capable of suffering, does it then acquire rights? Do we have the right to interfere with these, including the right to attempt to switch it off and end its digital life?  Will AI become a legal entity and have property rights? After all, much of our economy is owned by companies, another form of artificial ‘person’. Ethical challenges from ‘narrow’ AI Until general AI is here, however – and there is informed scepticism about its possibility – the AI tools currently in use are weak or ‘narrow’ AI. They are designed to perform a specific task or a group of related tasks and rely on algorithms to process data on which they have been trained.  Narrow AI presents various ethical challenges:  Unfairness arising from bias and opacity (e.g. AI used in the initial screening of job candidates include a gender bias based on historical data – in the past more men were hired); The right to privacy (AI trained with data without the consent of the data subjects); Threats to physical safety (e.g. self-driving vehicles); Intellectual property and moral rights, plagiarism and passing-off issues in the use of generative AI like ChatGPT and Bard; and Threats to human dignity from the hollowing out of work and loss of purpose. Regulation vs. ethics Such issues arising from the use of AI, particularly related to personal data, mean that regulation is inevitable.  We can see this, for example, with the EU’s landmark AI Act, due to apply by the end of 2025, which aims to regulate AI’s potential to cause harm and to hold companies accountable for how their systems are used. However, as Professor Pat Barker explained at a recent Consultative Committee of Accountancy Bodies (CCAB) webinar, until such laws are in place, and in the absence of clear rules, ethics are required for deciding on the right way to use AI.  Even when the regulation is in place, there are likely to be cases and dilemmas that it has not anticipated or about which it is unclear. Legal compliance should not be assumed to have all the ethical issues covered, and as AI is evolving so quickly, new ethical issues and choices will inevitably emerge.  Ethics involves the application of a decision-making framework to a dilemma or choice about the right thing to do. While such a framework or philosophy can reflect one’s values, it must also be objective, considered, universalisable and not just based on an instinctual response or what may be expedient. Established ethics frameworks include: the consequentialist or utilitarian approach – in the case of AI, does it maximise benefits for the greatest number of people?; and the deontological approach, which is based on first principles, such as the inalienable rights of the individual (an underlying philosophy of the EU’s AI Act). (The Institute’s Ethics Quick Reference Guide, found on the charteredaccountants.ie website, outlines five steps to prepare for ethical dilemmas and decision-making.)  A practical approach While such philosophical approaches are effective for questions like “Should we do this?” and “Is it good for society”, as Reid Blackman argues in Harvard Business Review, businesses and professionals may need a more practical approach, asking: “Given that we are going to [use AI], how can we do it without making ourselves vulnerable to ethical risks?”  Clear protocols, policies, due diligence and an emphasis on ethical risk management and mitigation are required, for example responsible AI clauses in agreements with suppliers. In this respect, accountants have an arguably competitive advantage in being members of a profession; they can access and apply an existing ethical framework, which is evolving and adapting as the technology, its opportunities and challenges change.  The Code of Ethics The International Ethics Standards Board for Accountants (IESBA) recently revised the Code of Ethics for Professional Accountants (Code) to reflect the impact of technology, including AI, on the profession. The Chartered Accountants Ireland Code of Ethics will ultimately reflect these revisions.  IESBA has identified the two types of AI likely to have the most impact on the ethical behaviour of accountants:  Assisted intelligence or robotic process automation (RPA) in which machines carry out tasks previously done by humans, who continue to make decisions; and  Augmented intelligence, which involves collaboration between human and machine in decision-making. The revisions also include guidance on how accountants might address the risks presented by AI to ethical behaviour and decision-making in performing their role and responsibilities.  Professional competence and due care The Code requires an accountant to ensure they have an appropriate level of understanding relevant to their role and responsibilities and the work they undertake. The revisions acknowledge that the accountant’s role is evolving and that many of the activities they undertake can be impacted by AI.  The degree of competency required in relation to AI will be commensurate with the extent of an accountant’s use of and/or reliance on it. While programming AI may be beyond the competency of many accountants, they have the skill set to:  identify and articulate the problem the AI is being used to solve;  understand the type, source and integrity of the data required; and assess the utility and reasonableness of the output.  This makes accountants well placed to advise on aspects of the use of AI. The Code provides some examples of risks and considerations to be managed by professional accountants using AI, including: The data available might not be sufficient for the effective use of the AI tool. The accountant needs to consider the appropriateness of the source data (e.g. relevance, completeness and integrity) and other inputs, such as the decisions and assumptions being used as inputs by the AI. This includes identifying any underlying bias so that it can be addressed in final decision-making. The AI might not be appropriate for the purpose for which the organisation intends to use it. Is it the right tool for the job and designed for that particular purpose? Are users of the AI tool authorised and trained in its correct use within the organisation’s control framework? (One chief technology officer has suggested not only considering the capabilities of the AI tool but also its limitations to be better aware of the risks of something going wrong or where its use may not be appropriate.) The accountant may not have the ability, or have access to an expert with that ability, to understand and explain the AI and its appropriate use.  If the AI has been appropriately tested and evaluated for the purpose intended. The controls relating to the source data and the AI’s design, implementation and use, including user access. So, how does the accountant apply their skills and expertise in this context?  It is expected that accountants will use many of the established skills for which the profession is known to assess the input and interpret the output of an AI tool, including interpersonal, communication and organisational skills, but also technical knowledge relevant to the activity they are performing, whether it is an accounting, tax, auditing, compliance, strategic or operational business decision that is being made.  Data and confidentiality According to the Code, when an accountant receives or acquires confidential information, their duty of confidentiality begins. AI requires data, usually lots of it, with which it is trained. It also requires decisions by individuals in relation to how the AI should work (programming), when it should be used, how its use should be controlled, etc.  The use of confidential information with AI presents several confidentiality challenges for accountants. The Code includes several considerations for accountants in this regard, including: Obtaining authorisation from the source (e.g. clients or customers) for the use of confidential information, whether anonymised or otherwise, for purposes other than those for which it was provided. This includes whether the information can be used for training AI tools.  Considering controls to safeguard confidentiality, including anonymising data, encryption and access controls, and security policies to protect against data leaks.  Ensuring controls are in place for the coding and updating of the AI used in the organisation. Outdated code, bugs and irregular updates to the software can pose a security risk. Reviewing the security certification of the AI tool and ensuring it is up to date can offer some comfort.  Many data breaches result from human error, e.g. inputting confidential information into an open-access web-based application is a confidentiality breach if that information is saved, stored and later used by that application. Staff need to be trained in the correct use and purpose of AI applications and the safeguarding of confidential information. Dealing with complexity The Code acknowledges that technology, including AI, can help manage complexity.  AI tools can be particularly useful for performing complex analysis or financial modelling to inform decision-making or alerting the accountant to any developments or changes that require a re-assessment of a situation. In doing so, vast amounts of data are collected and used by AI, and the ability to check and verify the integrity of the data introduces another level of complexity.  The Code makes frequent reference to “relevancy” in relation to the analysis of information, scenarios, variables, relationships, etc., and highlights the importance of ensuring that data is relevant to the problem or issue being addressed. IESBA was mindful, when revising the Code, that there are various conceivable ways AI tools can be designed and developed to use and interpret data.  For example, objectivity can be challenged when faced with the complexity of divergent views supported by data, making it difficult to come to a decision. AI can present additional complexity for accountants, but the considerations set out in the Code are useful reminders of the essential skills necessary to manage complexity. Changing how we work As well as its hugely beneficial applications in, for example, healthcare and science, AI is proving to be transformative as a source of business value.  With a range of significant new tools launched daily, from personal effectiveness to analysis and process optimisation, AI is changing how we work. These are powerful tools, but with power comes responsibility. For the professional accountant, certain skills will be brought to the fore, including adaptability, change and risk management, and leadership amidst rapidly evolving work practices and business models. Accountants are well placed to provide these skills and support the responsible and ethical use of AI.  Rather than fearing being replaced by AI, accountants can prepare to meet expectations to provide added value and be at the helm of using AI tools for finance, management, strategic decision-making and other opportunities. Michael Diviney is Executive Head of Thought Leadership at Chartered Accountants Ireland Níall Fitzgerald is Head of Ethics and Governance at Chartered Accountants Ireland