New Audit Wales code strengthens guidance on AI

Published on Thursday (9 July), the new code replaces the 2020 Code and takes into account the rise of artificial intelligence, legislative changes, and current resource constraints affecting the public sector.

Audit Wales said the main developments are a strengthening of emphasis on proportionality – particularly making good use of resources and taking a risk-based approach – requiring the application of professional scepticism and strengthening provisions on independence in line with the FRC’s Ethical Standard.

The code says the application of professional scepticism is "fundamental to good quality audit and is now of even greater importance with the use of artificial intelligence in accountancy”.

Announcing the new document, the Auditor General, Adrian Crompton, said: "The new Code provides an up-to-date basis for public sector audit work in Wales, taking account of developments in professional standards, new practices, such as the use of artificial intelligence, and resource constraints across the public sector."

The Auditor General is required to issue a Code of Audit Practice by the Public Audit (Wales) Act 2013. The Code must embody what appears to the Auditor General to be the best professional practice.

Adam Carey