FRC publishes landmark guidance providing clarity to audit profession on the uses of AI

On June 26, 2025, the Financial Reporting Council (FRC) published landmark guidance clarifying the use of AI in auditing. The guidance provides a coherent approach to implementing AI-enabled tools and outlines FRC documentation requirements, aiming to support innovation across the audit profession. Developed collaboratively with the FRC's Technology Working Group, this update is expected to guide auditors, central teams, and third-party technology providers on regulatory expectations for using AI in their work.