Big Accounting Firms Fail To Track AI Impact on Audit Quality, Says Regulator

The UK's Financial Reporting Council has found that the six largest accounting firms, including the Big Four, do not formally monitor the impact of automated tools and AI on audit quality, despite increasing use of the technology. The firms are using AI and automation for tasks such as risk assessments and evidence gathering, but primarily monitor usage for licensing purposes rather than to assess audit quality. The regulator's review found no formal monitoring in place to quantify the impact of these tools on audit quality. The FRC has published a guide on AI alongside its review, highlighting the need for firms to better understand the effects of automation on their work.