LATEST UPDATE
FRC Publishes Landmark Guidance Providing Clarity to Audit Profession on the Uses of AI
The Financial Reporting Council (FRC) has published its first guidance on the use of artificial intelligence (AI) in audit, alongside a thematic review of the processes of the six largest firms for certifying new technology used in audits, including insights and examples of good practice.
As AI tools continue to be utilised in audit, this new guidance outlines a coherent approach to implementing a hypothetical AI-enabled tool, and offers insights into FRC documentation requirements, all designed to support innovation across the audit profession. It is available on:
https://media.frc.org.uk/documents/AI_in_Audit.pdf
This guidance should support auditors and central teams as they develop and use AI tools at audit firms, while also providing third-party technology providers with the regulatory expectations for their customer base.
The accompanying thematic review is available on:
The guidance is comprehensive in scope and focuses on supporting innovation while maintaining appropriate standards.
