NEW YORK (Oct. 13, 2026) – The American Institute of CPAs has issued a new practice aid for auditors that provides a framework for understanding how artificial intelligence affects the financial statement audit in two key areas: when an organization uses AI in its financial reporting or controls, and when auditors use AI-related technology in performing the audit.
The practice aid, Artificial Intelligence (AI) Considerations for Financial Statement Auditors, is designed to help auditors understand and respond to the use of artificial intelligence in business processes and financial reporting. It also covers the implications when AI is used by auditors in performing the financial statement audit. The guidance will aid CPAs in evaluating AI-related risks, understanding how AI may affect controls, and determining appropriate audit responses and the auditor’s use of AI tools when performing the audit.
“AI tools are already benefiting the efficiency and effectiveness of both financial statement preparation and the audit in a number of ways,” said Amy Pawlicki, the AICPA’s vice president of assurance and advisory innovation. “But as powerful as they are, these tools can introduce new risks that auditors must be cognizant of in fulfilling the critical role they play in performing financial statement audits. This practice aid is intended to help auditors understand and mitigate these risks in a rapidly evolving environment.”
The practice aid is currently divided into two parts: the first covering how an organization’s use of AI in financial reporting affects the financial statement audit, and the second covering audit firms’ use of AI-related technological resources in the performance of their audit engagements.
More guidance, including a deeper dive into assessment of the risk of material misstatement and evaluation of audit evidence when a company is using AI, will be added to section one of the guidance in the future. In addition, more Q&As are expected to be added to the section on the implications of using AI in the audit process.
Considering an organization’s use of AI
One of the key questions for auditors to address at the start of an engagement is the extent to which a company relies on AI in its financial reporting. Some businesses are already using AI directly in their accounting and reporting processes, while others may use it indirectly in business functions.
Among other topics, section one of the practice aid discusses:
AI in broad terms, its different variations, how AI differs from ordinary automation, and how that may affect the auditor’s risk assessment.
How the quantity, quality, accuracy, completeness, relevancy and diversity of data can significantly affect the reliability of an AI system.
The need to assess the audit team’s capabilities, since practitioners may need a blend of auditing expertise, AI knowledge, data skills, professional skepticism and specialist support.
How to determine whether the company’s use of AI affects financial reporting, and what this means for the application of professional standards in the financial statement audit.
Types of new risks that can be introduced by AI, such as data risks, model risks, hallucinations, explainability and bias.
Understanding controls that are foundational to the organization’s system of internal control that may relate to its use of AI in the financial reporting process.
Use of AI-related technological resources by audit firms
AI can enhance audit quality and efficiency, and the guidance underscores that auditors remain responsible for appropriate supervision, review and audit conclusions. Like the entities they audit, audit firms rely on AI tools to varying degrees.
Section two of the practice aid:
Emphasizes the importance of establishing quality management policies and procedures to address the firm’s responsibilities relating to AI tools.
Addresses firm-level considerations about the competence and capabilities of the engagement team when using AI tools.
Recommends audit firm planning on the intended use of AI in specific engagements.
Outlines the responsibilities of engagement team partners to understand AI tools they’re using, ensure they’re approved by the firm and are being used correctly by staff.
“This section provides practical guidance to auditors when using AI, including considerations for quality management, appropriate supervision and review, and continued attention to professional judgment and professional skepticism,” said Jennifer Burns, the AICPA’s chief auditor. “Ultimately, the auditor remains responsible for the audit and the audit opinion.”
Additional AI-related guidance
In addition to the new practice aid, the AICPA has issued two other relevant items on AI-related topics in the past year:
Guidance on the effect service organizations use of AI may have on SOC 1 and SOC 2 engagements.
A staff insights article, “AI Through an Ethics Lens,” available to members through the AICPA’s online ethics library.