Document

This is a sample workpaper that may be used in your engagement or organizational documentation.

Memorandum
To: Engagement Workpapers
From: [Insert auditor name]
Date:
Re: Ensuring Reliable Technological Results with MindBridge

Under the International Ethics Standards Board for Accountants (IESBA) International Code of Ethics for Professional Accountants (including International Independence Standards), professional accountants who plan to rely on the work of others, whether internal or external to the employing organization, or other organizations, are required to determine whether reliance on those others (including technology) is reasonable.

The IESBA revisions require professional accountants to determine whether it is reasonable to rely on technology, whether developed internally or provided by third parties. The revisions cite factors that are relevant when identifying compliance threats when relying on the output of technology, including:

• Whether information about how the technology functions is available to the accountant
• Whether the technology is appropriate for the purpose for which it is to be used
• Whether the accountant has the professional competence to understand, use, and explain the output from the technology
• Whether the technology incorporates expertise or judgments of the firm
• Whether the technology was designed or developed by the accountant or employing organization and therefore might create a self-interest or self-review threat

For Public Accounting Firms Only: These requirements are in addition to the requirements outlined in International Standard on Quality Management 1 (ISQM 1) that require an assessment of service providers.
MindBridge is a globally recognized risk discovery platform that we have utilized for various audit procedures. MindBridge has long realized that transparency is critical for safe and effective use of technology, and it has received numerous independent third-party validation of the reliability of its technology. We can establish a high degree of assurance that the MindBridge solution delivers credible results through several key factors:

• Algorithm Validation: MindBridge's algorithms undergo regular independent third-party validation, including a comprehensive audit by Holistic AI, a renowned center for algorithm safety.
• Security and Compliance: MindBridge holds SOC 2 Type 2 certification, affirming robust controls over information security and data confidentiality.
• Quality Assurance: MindBridge employs a rigorous Quality Assurance (QA) process to ensure all technological changes meet stringent standards. This includes comprehensive testing for functionality, performance, and security across development cycles.
• Certifications: MindBridge maintains ISO 27001, 27017, and 27018 certifications, demonstrating its commitment to secure data handling and privacy.

Technology Ethics
We have specifically assessed the following criteria based on the factors to rely on the work of others or technology.

1. The nature of the activity to be performed by the technology
   We utilize MindBridge for the following procedures and tests:

   • Planning analytics
   • Risk assessments
   • Full population transaction scoring
   • Journal entry testing
   • Sampling
   • Overall analytical review
   • Standback assessments at the completion of the engagement

2. The expected use of, or extent of reliance on, the output from the technology
   We have determined that the output from MindBridge’s technology will be used to inform better with data for the above-listed procedures.

3. The professional accountant’s ability to understand the output from the technology for the context in which it is to be used
   Our firm has sufficient expertise and knowledge of the organization to understand the context in which the technology will be used.

4. Whether the technology is established and effective for the purpose intended
   MindBridge has been certified as having high levels of reliability from a variety of independent sources.

5. Whether new technology has been appropriately tested and evaluated for the purpose intended
   As discussed above, MindBridge has been certified as having high levels of reliability from a variety of independent sources.

6. The reputation of the developer of the technology if acquired from or developed by an external vendor
   MindBridge has been in operation for 9 years with a strong reputational footprint in the industry.

7. The firm’s oversight of the design, development, implementation, operation, maintenance, monitoring or updating of the technology
   The independent reviews of MindBridge have confirmed the appropriateness and effectiveness of its quality control processes.

8. The appropriateness of the inputs to the technology, including data and any related decisions
   MindBridge performs several validations checks to determine the quality, integrity, and completeness of the data it is provided.

For Public Accounting Firms Only: ISQM 1 or other applicable standards
We have specifically assessed the following criteria based on the factors to rely on a service provider as outlined in ISQM 1:

1. The related quality objective and quality risks
   MindBridge’s technology allows us to reduce detection risk by assessing multiple and simultaneous tests of the entire general ledger.

2. The nature and scope of resources, and the conditions of the service
   Scope: See #1 of Technology Ethics section. Update Frequency: Major feature releases are typically scheduled for May, August, and November. Data Confidentiality: MindBridge maintains SOC 2 Type 2 and ISO 27001 certifications.

3. The extent to which the resource is used across the firm, how the resource will be used by the firm and whether it is suitable for that purpose
   Describe scope of adoption of MindBridge within the firm.

4. The extent of customization of the resource for the firm
   MindBridge allows for in-platform configuration based on the engagement or firm-specific needs.

5. The firm’s previous use of the service provider
   The Firm has used MindBridge since [insert date] and continues to believe the platform provides value in engagements.

6. The service provider’s experience in the industry and reputation in the market
   MindBridge was the first to bring an ensemble AI approach to the market for the analysis of financial transactions.

Conclusion
As a result of our review, we have determined that the MindBridge platform meets the technology reliability standards under IESBA.