AU | Incident Report
Regulatory Action
2025-12-30
ASIC Australia Probes AI Use in Financial Audit Negligence
AI Model: Unspecified generative AI tool AuditAccountingNegligence
I. Executive Summary
The Australian Securities and Investments Commission launched an investigation into a major accounting firm over AI-assisted audit failures.
II. Key Facts
- AI tool missed significant manual entry anomalies in financial statements. • Auditors relied on AI sampling without secondary human verification. • Focus on whether AI reliance breaches "Professional Skepticism" duties.
III. Regulatory & Ethical Implications
Clarifies that professional standards for auditors are not mitigated by the use of AI tools.