IRBA Issues Staff Audit Practice Alert 11 on GenAI and Emerging Technologies

Posted 07 October 2025 Written by Acts Online
Category Technology

Brought to you by SA Accounting Academy: The Independent Regulatory Board for Auditors (IRBA) has released new non-authoritative guidance regarding the use of generative artificial intelligence (GenAI) and other emerging technologies in the performance of audits.

In terms of the Auditing Profession Act, No. 26 of 2005, the Independent Regulatory Board for Auditors (IRBA) published Staff Audit Practice Alert 11, titled “The Use of GenAI and Emerging Technologies in Audits.” This Alert is designed to assist registered auditors in applying the International Standards on Quality Management (ISQM) and the International Standards on Auditing (ISA) within the South African context when utilizing advanced technological tools.

The guidance emphasizes that while GenAI offers significant benefits for audit efficiency, it does not replace existing auditing standards. Engagement teams and firms are required to maintain ownership of the technologies used and ensure that professional skepticism and judgment remain central to the audit process. The Alert focuses on several critical regulatory and operational areas:

  • Accountability and Ownership: Audit firms must take full responsibility for the outputs generated by AI tools used during an engagement.
  • Training and Competence: Firms are required to ensure that audit staff are adequately trained to understand the limitations and risks of the specific technologies deployed.
  • Professional Judgment: Registered auditors must retain final responsibility for all professional judgments, ensuring they are not superseded by automated outputs.
  • Quality Management: Integration of these technologies must align with the firm’s system of quality management as required by ISQM 1 and ISQM 2.

The Alert further highlights the necessity for auditors to remain informed about emerging risks, including data privacy concerns, algorithmic bias, and the ethical considerations associated with automated decision-making in a financial reporting environment.

Click here to download the Staff Audit Practice Alert 11.

What this means for you, your business, or your clients

  • For yourself: You must document how you have exercised professional skepticism when reviewing AI-generated audit evidence to ensure compliance with ISA 200.
  • For your business: Your firm must update its internal quality management policies under ISQM 1 to specifically address the procurement, validation, and monitoring of GenAI tools used in engagements.
  • For your clients: Clients should be informed that the use of GenAI in audits may require additional disclosures or controls regarding the integrity and security of the data they provide to the audit firm.

Originally published at https://accountingacademy.co.za/news/read/irba-staff-audit-practice-alert-11-the-use-of-genai-and-emerging-technologies-in-audits

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