You can’t blame AI for mistakes, regulator tells auditors
Regulators just drew a line: AI mistakes = human liability. Here's what that means for your audit function.
Why it matters
Financial regulators are establishing that human oversight remains legally non-delegable in AI-assisted auditing. This creates compliance friction for firms deploying AI at scale and clarifies governance expectations around AI in high-stakes decision-making.
The key facts
5 to knowFinancial Reporting Council (UK) issued formal guidance on AI use in audits
Guidance emphasizes mandatory human oversight — auditors cannot shift liability to AI systems
Applies to financial reporting and audit functions
Signals regulatory expectation: AI is a tool, not a decision-maker, in regulated industries
Published March 30, 2026 — active enforcement signal from major financial regulator
Go to the source
Financial Times Technologyft.com
Publisher excerpt: Financial Reporting Council issues guidance stressing need for human oversight