Ethical Implications of AI in Tax and Accounting Practices: Identifying Risks, Implementing Guidelines

Everyone expects artificial intelligence (AI) will enhance and disrupt workflows for tax preparation and accounting. Usage of AI is already ramping up, and the impact has been substantial, even at this early stage. In the past year, we have seen an explosion of scripted robotic agents (a.k.a., dumb RPA bots) being deployed to automate repetitive workflows by pulling data, completing forms, making decisions, and following established processes. Today’s dumb bots are incapable of deep thinking and strategy, but they get work done and can perform many AP, AR, and payroll tasks as competently as a person, only faster and 24x7. This is already resulting in workforce displacement that impacts the labor market. The next generation of worker agents will be fully intelligent (a.k.a., smart bots), capable of handling any situation, making nuanced decisions on sensitive matters, and directing (not just following) the organization’s workflow. As this inevitable transformation unfolds, the tax and accounting services industry must be vigilant at imposing the highest standards of ethics.

As the use of AI scales, so do the risks. Today, the risk is mostly data security and protecting a client’s sensitive information. Tomorrow, the risk will evolve into questionable judgement calls, lack of transparency, violations of accounting practices, susceptibility to influence to commit fraud or other crimes, and more. There are ample risks associated with using AI and the related consequences can be severe.

Listen as our panel of knowledgeable AI professionals addresses managing the ethical concerns surrounding AI for tax and accounting firms.

1. Ethical implications of AI in a tax and accounting practice
2. AI applications for tax and accounting practices
3. Ethical risks and AI
4. Exercising professional skepticism
5. Establishing guidelines
6. Other considerations
7. Case scenarios

The panel will cover these and other critical issues:

• The significant impact of AI on tax and accounting firms
• Recommended guidelines to implement surrounding AI usage in a tax practice
• How to safely lean into this amazing technology
• Appropriate professional skepticism when utilizing AI
• Case scenarios examining dangers and considerations for AI usage

Learning Objectives

After completing this course, you will be able to:

• Identify how tax practitioners are utilizing AI to expedite workflow
• Determine guidelines that accounting and tax firms should implement for AI
• Ascertain risks associated with using AI for tax and accounting practices
• Decide steps to take to ensure sensitive client data is secure

• Field of Study: Taxes
• Level of Knowledge: Intermediate
• Advance Preparation: None
• Teaching Method: Seminar/Lecture
• Delivery Method: Group-Internet (via computer)
• Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
• Prerequisite: Three years+ business or public firm experience preparing complex tax forms and schedules, supervising other preparers or accountants. Specific knowledge and understanding of individual income taxation, including itemized deductions, individual income tax credits, net operating loss limitations including carrybacks and carryforwards.

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.

IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).