Australia's Ethics Standard Setter Says Members of the Australian Accounting Bodies Who Use AI Remain Responsible for the Outcomes

On October 31, 2025, Australia's Accounting Professional & Ethical Standards Board, APESB, issued a technical alert titled "The ethical use of artificial intelligence by professional accountants." It is written for professional accountants who are members of the Australian Accounting Bodies. When they use AI, it says, they "must continue to meet their ethical obligations" under the APES 110 Code of Ethics for Professional Accountants (including Independence Standards). Parts of it follow, not the whole.

AI offers numerous benefits, the alert says, including faster analysis, predictive insights and automated reporting. It also creates ethical challenges, "as evidenced by recent incidents in Australia and globally." The alert does not describe those incidents.

New principle-based provisions in the Code relating to technology took effect on January 1, 2025. The amendments, the alert says, ensure that the Code continues to guide members' ethical use of technology, including AI tools, in a responsible manner, and that fundamental principles such as integrity, professional competence and due care, and confidentiality are upheld. Compliance with the Code's principles "will help mitigate the risks associated with the use of AI."

Responsible for the Outcomes

Technology such as AI can assist in producing, summarizing and interpreting information, the alert says. But members "remain responsible for the analysis, the underlying professional judgements, and the outcomes of the professional activity provided to a client or employer." So they should be mindful of the extent of their use of technology, and avoid undue reliance on or undue influence from technology such as AI, "which at times can hallucinate and present convincing answers that are not accurate."

The next sentence is a "must." Members "must have an inquiring mind to critically assess and verify any information used or produced for a professional activity, which includes AI-generated information."

Disclosure, and a Review of the Pronouncements

"Importantly, Members should disclose when AI tools are used and supervise and review their use in the delivery of professional activities," the alert says, in line with the fundamental principles of integrity, professional competence and due care, and professional behavior.

For members "providing professional services to clients, such as valuation, forensic accounting, and corporate finance," the board's service-specific standards "require disclosure of the methodology and sources of information used to prepare reports." Such a disclosure, the alert says, "would generally include the use of AI tools and AI-generated information."

At its board meeting of September 11, 2025, APESB decided to review its suite of pronouncements, to consider "whether additional guidance is required regarding the use of technology, including AI." The project has commenced, the alert says, with an initial focus on gathering information and engaging stakeholders.