UK Accounting Firms Get First Guidance on Using AI in Audits

The UK’s accounting watchdog issued its first guidance for the use of artificial intelligence in audits, defining the technology and telling firms how to document their use of it.

The Financial Reporting Council said the guidance released Thursday didn’t introduce any new regulatory requirements. Instead it was designed to maintain high audit standards while helping auditors use developing technology.

• “AI tools are now moving beyond experimentation to becoming a reality in certain audit scenarios,” Mark Babington, FRC’s executive director of regulatory standards, said in a statement. “When deployed responsibly, they have significant potential to enhance audit quality.”
• Auditors ...