SBR syllabus
Accounting Ethics in the Digital Age 9 / 10
Accounting Ethics in the Digital Age
Ethical behavior is crucial in today's digital world, which presents new challenges like cybersecurity, platform-based businesses, distributed ledgers, big data, and artificial intelligence.
Cybersecurity
Data theft is a common issue. It can lead to financial loss and harm a company's reputation.
Accountants must be vigilant about data security.
Regulations about data use and privacy are growing, and accountants must ensure compliance.
Platform-based Business Models
Companies like Airbnb, Uber, and Facebook connect users and suppliers.
Accountants should consider fairness to suppliers and stakeholders.
Distributed Ledger Technology (DLT)
DLT is a shared digital database. It's more secure but not risk-free
Accountants need to assess data security risks, especially when dealing with sensitive information
Big Data and AI
Big data and AI provide insights but raise ethical questions
Accountants should ensure proper governance and address issues like bias and data use
A Structured Approach:
Gather the facts
Identify ethical concerns
Determine which principles are at risk
Check if internal procedures can mitigate the risk
Consider different actions to address the issue