Scope and the adoption figures
Audit Practice Guidance No. 1 of 2026 covers AI-assisted procedures and information prepared with AI, adapting considerations to each firm and engagement rather than prescribing one universal implementation. Its cited Accounting Entities Survey 2025 shows Singapore entity adoption at 6% in 2023 and 11% in 2024. Agentic multi-step capabilities make oversight increasingly relevant; these dated adoption figures are not 2026 survey results.
Integrity applies outside engagements too
Do not misrepresent performed work, fabricate/manipulate information or select AI outputs merely to support a predetermined answer. Accurately explain performed procedures and conclusions. The guidance describes an unnamed 2026 international-firm partner fined for AI-assisted training-assessment cheating, illustrating integrity beyond engagements; it does not identify the individual or specify the fine. Time/budget pressure does not change professional responsibility.
Judgement and automation bias
AI can hallucinate, amplify bias and misunderstand context. Apply scepticism and the same scrutiny used for human-prepared information. For predefined extraction/matching, test completeness/accuracy; for risk assessment, documentation or other judgement work, check underlying sources where appropriate and the reasonableness of conclusions. Independent reasoning should corroborate results. Ask whether a different result on identical inputs could be explained rather than simply trusted.
Accountability cannot be delegated
The auditor owns the performed work, conclusions and audit opinion, even when AI assisted. The guidance compares SSA620: using an expert does not reduce opinion responsibility. Set clear team ownership for each process and final approval, and review/verify before issue. Unnamed incidents in the guidance led to corrected/withdrawn reports and one partial refund; they do not imply AI itself bears liability.
Transparent documentation and governance dialogue
Records should show output review, judgement and sufficient appropriate evidence. Where appropriate retain prompts, assumptions, significant human revisions and reasons for accepting/rejecting recommendations. Policies should govern documentation, review and oversight. Explain AI use and safeguards to those charged with governance where appropriate, consistent with AQI dialogue. Record verification limits and their effect on conclusions, and assess repeatability/inconsistency for the same inputs.
Confidentiality, residency and security
Understand processing, storage, retention, sharing and whether inputs train models. If uncertain, avoid confidential/client-identifiable data. Use tools approved by firm governance/security/compliance; specify permitted tools, information and anti-leakage safeguards proportionate to differing confidentiality/residency risks. The cited 2023 proprietary-code upload illustrates loss of control in public tools. Ask whether prompts inadvertently identify clients and whether disclosure to the client of data used would be defensible.
All profession and governance resources
The guidance links the refreshed Accountancy Skills Framework, ACRA’s 2025 technology/audit-quality guidance, IMDA’s Model AI Governance Framework for Agentic AI and AI Verify’s eleven governance principles, and ISCA AI Fluency Programme/Responsible AI Framework. It also points to IESBA’s July 2026 characteristics-based ethical technology publication. These are complementary resources, not incorporated here as binding audit requirements or a mandated product list.
Support conditions and continuing professional duties
Enterprise Development Grant may support eligible upgrade/innovation/growth projects subject to its conditions; the PDF gives neither a grant percentage nor guaranteed eligibility. Firms should build skills and controls as AI evolves while preserving independence, scepticism and public trust. The profession should apply to its own AI-generated information the rigour it expects clients to apply to theirs.
Official source
This article independently explains the substantive contents of the official PDF, including the relevant conditions, procedures and annexes. The linked document remains the authoritative source for its original wording, and later changes should be checked separately.
Read the official PDF ↗