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Accountancy Europe has published a new paper, Generative AI in audit and assurance – Use cases and examples, which explores the practical opportunities, risks and considerations associated with the use of generative artificial intelligence (GenAI) in audit and assurance engagements. The paper is primarily aimed at small and medium-sized practices (SMPs).
GenAI is increasingly being used across the audit lifecycle. Potential applications include researching a client’s industry, reviewing and summarising contracts and board minutes, comparing documents, preparing working papers and supporting audit documentation and communications. It can also assist auditors in analysing unstructured information to identify themes, inconsistencies or areas requiring further investigation. By reducing the time spent on routine and administrative tasks, GenAI may enable auditors to devote greater attention to areas requiring professional judgement, analysis and scepticism.
The paper also considers the evolution from AI assistants to agentic AI systems, which can combine tools, data and workflows to perform multi-step tasks.
Alongside these opportunities, Accountancy Europe highlights risks related to AI reliability and hallucinations, over-reliance, confidentiality and data protection, bias and transparency, as well as the need for appropriate skills, governance and supervision. The level of safeguards and human review should reflect the nature and risk of each use case.
Importantly, the use of GenAI does not change the auditor’s responsibilities. Professional judgement, accountability and responsibility for audit quality remain with the auditor, making appropriate human oversight essential as the technology develops.
The Committee of European Auditing Oversight Bodies (CEAOB) has issued its technical advice on the development of an EU limited assurance standard for sustainability reporting.
The advice was prepared in response to the European Commission’s (EC) request for the CEAOB to assess the International Standard on Sustainability Assurance (ISSA) 5000 and identify potential EU-specific additions or carve-outs. It will support the EC in developing an EU limited assurance standard, which is expected to be adopted through a delegated act.
As a next step, the EC is expected to open a public call for evidence on the proposed approach, drawing on the CEAOB’s technical advice.
Accountancy Europe has responded to the EC’s communication on competitiveness in the single banking market.
It welcomes the Commission’s call for a cultural shift towards a more risk-based approach and supports simplification. However, auditors must continue to comply with legal and regulatory requirements, quality management and ethical standards, and independent audit oversight.
Accountancy Europe stresses that simplification cannot be achieved by auditors alone. It requires a shared commitment from banks, supervisors, audit regulators and the profession, supported by close dialogue to reduce unnecessary complexity while maintaining audit quality and trust.
Accountancy Europe has published a factsheet mapping the adoption and implementation of the International Standard on Auditing for Less Complex Entities (ISA for LCE) across 32 jurisdictions.
The standard provides an alternative to the full suite of International Standards on Auditing (ISAs) for eligible audits of less complex entities and offers the same level of assurance: reasonable assurance.
Eight jurisdictions have adopted the standard or permit its use, including all five Nordic countries. Switzerland and Turkey have identified adoption timelines.
The factsheet also explores factors influencing adoption, including audit exemption thresholds, the CEAOB’s position, national alternatives and implementation considerations.
The International Ethics Standards Board for Accountants (IESBA) has released new Staff Questions & Answers (Q&As) to support the implementation of the International Ethics Standards for Sustainability Assurance (IESSA).
The Q&As provide guidance on the effective date and transitional provisions, including leader rotation and certain independence requirements. They also address the rotation of engagement leaders and other key sustainability assurance leaders when audit and sustainability assurance engagements are performed for the same public interest entity, as well as requirements concerning non-assurance services.
The publication builds on IESBA’s June 2025 Q&As and comes ahead of the IESSA’s effective date of 15 December 2026.
Chartered Accountants Ireland (CAI) has published a concise guide on the ethical use of artificial intelligence (AI) technologies for accountancy professionals.
The guide highlights key ethical considerations for using AI, including professional judgement, objectivity, competence, confidentiality, transparency and accountability. It stresses that professionals remain responsible for their work when using AI and should apply appropriate human oversight and professional scepticism.
The UK Financial Reporting Council (FRC) has published final revisions to ISA (UK) 620 on using the work of an auditor’s expert and ISAE (UK) 3000 on assurance engagements. The revisions maintain alignment with the equivalent IAASB standards and ensure interoperability with the IESBA Code’s new ethical requirements for using external experts.
The revisions clarify practitioners’ responsibilities for using external experts, including the evaluation of their competence, capabilities and objectivity, and reinforce related documentation requirements.
The revised standards will apply to audits of financial statements for periods commencing, and assurance reports dated, on or after 15 December 2026.
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