FRC Guidance: Enhancing Audit Quality with AI & Guidenet.ai's RACM

The use of artificial intelligence (AI) in audit procedures has been hypothesized for many years. This prospect is fast becoming a reality, we have begun to see tools that use AI being deployed on live engagements, and many more such tools are in development.

The FRC encourages innovation and believes AI, deployed responsibly and appropriately, has the potential to significantly enhance audit quality. Higher audit quality supports greater trust in UK companies' financial reporting, reducing the risk premium the market may charge them to access capital, and therefore improving their competitiveness and ability to grow.

In this publication, the term AI refers to a broad range of systems, comprising both traditional machine learning techniques and deep learning models, including generative AI.