AI is being used for many tasks these days, from planning a meal to helping build business plans, and the auditing profession is no exception.
Many firms, particularly the larger practices, are investing in AI to improve audit efficiency and focus human time where it adds most value.
Over the next few years, it’s reasonable to expect more audit firms to adopt AI tools as part of that evolution.
Will AI audits replace human-led ones?
As helpful as many believe AI to be, there is little evidence that the human element is going away anytime soon.
Professional judgement, scepticism, and the ability to understand a client’s business context remain central to good auditing.
AI can help with repetitive data processing, risk‑scoring and pattern detection, but people still design procedures, evaluate exceptions, and make the judgement calls that matter to regulators and stakeholders.
It’s also important not to overstate how unregulated the audit market is.
Statutory audits, the audits that underpin companies’ legal reporting obligations, can only be carried out by authorised and regulated firms.
UK audit firms that adopt AI remain subject to existing professional and regulatory standards, including oversight from bodies such as the Financial Reporting Council and other relevant authorities.
In short, regulated firms using AI are not operating in a lawless environment.
What are the issues posed by AI audits?
There are genuine concerns about the impact of AI on the way that audits are conducted.
The British Standards Institution (BSI) has highlighted the emergence of providers offering AI-led services without robust methodologies or appropriate governance.
For businesses engaging any audit or assurance provider, it’s still sensible to check credentials, governance arrangements and data‑handling practices.
Unregulated providers handling sensitive information pose risks that firms should mitigate.
Audit standards and guidance are catching up, although it’s fair to say they have not fully kept pace with the speed of AI development.
New standards and certification frameworks, such as recent moves to formalise AI management system requirements, are positive steps, yet fully effective oversight will take time to be properly implemented.
There are meaningful protections in place, but vigilance and continuous improvement are required to ensure that no one gets caught out.
AI is a tool that can improve audit quality and efficiency when used responsibly.
Where it is used, firms should be transparent about how AI is applied, ensure qualified professionals retain responsibility for key judgements, and confirm that any provider meets regulatory and professional expectations.
We continue to offer human-led auditing services that are designed to help your business thrive.
