The UK Financial Reporting Council (FRC) has released on the use of generative and agentic AI tools in audit engagements.
The guidance outlines how audit firms can mitigate risks and realise the benefits of the technologies. It provides a framework for assessing the quality of AI tool outputs and offers illustrative examples of audit firms using the technologies in real-world scenarios.
Mark Babington, FRC executive director of regulatory standards, stated: “This guidance is designed to help firms invest in these tools with confidence, safe in the knowledge they are managing risk effectively and maintaining the high standards the public expects, while leveraging the benefits of new technology.”