Technology is rapidly transforming the audit and assurance landscape. What have regulators, standard-setters, professional bodies and others been doing to keep pace? And what can we expect from 2026?
2025 saw a surge in tech-related initiatives ranging from the publication of the Financial Reporting Council (FRC)’s AI and audit guidance, to the inclusion of technology as one of the three core themes of ICAEW’s Next Generation ACA syllabus. The pace is expected to continue in 2026 with guidance, articles, courses, webcasts and more.
Regulators maintaining momentum
The FRC continues to take a principles-based approach to the adoption of tech in audit, publishing its inaugural guidance on the use of artificial intelligence (AI) in audit in June last year. This outlined the FRC’s non-prescriptive approach to how auditors and audit firms might implement and document both internally developed and third-party AI tools.
During an ICAEW podcast in November, the FRC’s Head of Assurance Technology, Ramana McConnon, expanded on the main themes of the guidance. McConnon highlighted that the FRC wanted to issue guidance on AI to show that it was comfortable in principle with firms using it “as long as it’s done sensibly”.
The FRC and ICAEW encourage the responsible use of AI and other technologies by auditors. In September 2025, the FRC launched its Innovation and Improvement Hub aimed at providing a safe space where audit firms can explore together how to leverage technology and overcome challenges.
2026 promises to be another busy year for the FRC, with hub activities gaining momentum, and a second publication expected, this time addressing audit and agentic AI. The FRC will also continue to engage with stakeholders to understand how smaller firms can overcome obstacles limiting their ability to innovate, an issue that was highlighted in the emerging findings of the FRC’s SME Audit Market Study last year.
Standard-setters embracing change
In 2024, the International Auditing and Assurance Standards Board (IAASB) published its Technology Position. This represented a shift in how the international standard-setter deals with the impact of tech on the profession and acknowledged that audit, assurance and quality management standards cannot remain ‘technology-agnostic’.
As part of this, the IAASB has committed to an ongoing gap analysis, which informs its work plan to develop standards and guidance that keeps pace with emerging technologies.
IAASB staff have been engaging with international stakeholders – including ICAEW – to discuss how auditors’ use of tech in obtaining audit evidence and evaluating its sufficiency and appropriateness might be facilitated and encouraged. The exposure drafts of revised ISAs 330 (The Auditor’s Responses to Assessed Risks), 500 (Audit Evidence) and 520 (Analytical Procedures) – which take account of these conversations – are expected to be released in June this year.
ICAEW supporting current and future auditors
ICAEW has expanded its own technology and audit guidance offerings with AI masterclass videos, articles, webinars and a raft of other guidance. These can be found on our dedicated Audit and technology hub, Data analytics hub and within our Generative AI guide. These resources cover the basics, explore the use cases and potential risks for tools such as generative AI in accounting and audit, and outline how accountants can make responsible use of AI and data analytics.
Members can enrol on ICAEW’s GenAI Accelerator Programme to help unlock opportunities to deploy generative AI in their everyday work. An ICAEW-certified course on using Power BI to work effectively with data is also available.
It is not only larger and mid-tier audit firms that are getting to grips with the transformative potential of tech. Small firms are also considering the practical applications of tools such as data analytics and AI. Our June 2025 webinar (and follow-up articles – AI: a smaller firm’s perspective and AI: a larger firm’s perspective) explored the opportunities and challenges of AI in audit for larger and smaller firms.
Last year, ICAEW’s ACA qualification underwent a significant overhaul. The Next Generation ACA acknowledges that technologies are transforming the future of accountancy, with technology now a key theme running throughout the exam pathway. ICAEW also launched a Technology Hub for students, complementing the revised ACA, which provides a safe, hands-on environment for ACA students to explore and experiment with new tech.
The ICAEW Code of Ethics also underwent a significant update, with revisions coming into effect from 1 July 2025, including those relating to the impact of technology on the work and skills of professional accountants.
This year, members can expect the release of a substantially revised guide on data analytics and the external auditor, further articles exploring how AI is being leveraged by auditors and their clients, and technology-related sessions at the Audit and Assurance Faculty’s June 2026 conference.
ICAEW will continue to play an important role in ongoing discussions about how the profession can adapt to the opportunities and challenges presented by emerging technologies.
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