UK’s FRC Releases Guidance on Using AI Tools for Audits

UK accountancy regulator FRC says auditors can't blame AI for audit failures, after it published what it called the world's first guidance on auditor AI usage (Ellesheva Kissin/Financial Times)

Ellesheva Kissin / Financial Times: UK accountancy regulator FRC says auditors can't blame AI for audit failures, after it published what it called the world's first guidance on auditor AI usage — Financial Reporting Council issues guidance stressing need for human oversight — The UK's accountancy…

Auditors warned they remain accountable despite use of AI

Accountability for audit quality will remain with “people” despite increasing use of artificial intelligence in the audit process, regulators this week warned. The notice came from the Financial Reporting Council as it issued guidance on the use of generative and agentic AI in the auditing. Mark Babington, the FRC’s executive director of regulatory standards, says in statement that AI adoption is “accelerating” and the guidance is designed to he…

UK’s FRC releases guidance on using AI tools for audits

The Financial Reporting Council (FRC) in the UK has released a detailed guidance for audit firms on the use of generative and agentic artificial intelligence (AI) in audit work. The document focuses on how firms can manage the risks to audit quality arising from the use of these technologies, while still securing the potential benefits. FRC noted that the guidance has been drawn up following engagement with the market and is intended to support …