Accountancy Insights: How to use AI in tax ethically, and group audit best practice

This episode covers AI and tax work and ISA 600 on group audits, following the release of two pieces of guidance on the topics. 

With several tax cases in which AI has been used and provided incorrect or misleading information, we outline how to apply the five fundamental ethical principles to AI use. 

ISA 600 on group audits was revised, effective for audits of financial statements for periods commencing on or after 15 December 2023. These changes are quite wide ranging, particularly when it comes to the treatment of component auditors. We go through the details. 

Links:

ICAEW: Professional conduct in relation to taxation (PCRT) - https://www.icaew.com/technical/tax/working-in-tax/pcrt

ICAEW: Auditing groups of companies - https://www.icaew.com/technical/audit-and-assurance/audit/group-audit

HMRC v Gunnarsson - https://assets.publishing.service.gov.uk/media/688240632b6fd60b7c16100d/HMRC_v_Gunnarsson_final_decision.pdf

ICAEW: PCRT Guidance on ethical use of AI - https://www.icaew.com/technical/tax/working-in-tax/pcrt/topical-guidance-application-of-pcrt-to-ethical-use-of-artificial-intelligence-tools

ICAEW: Use of AI criticised in tax case - https://www.icaew.com/insights/tax-news/2025/aug-2025/use-of-ai-criticised-in-tax-case

ICAEW: Group auditing: nine key changes for auditors - https://www.icaew.com/insights/viewpoints-on-the-news/2026/jan-2026/group-auditing-nine-key-changes-for-auditors

Host

Philippa Lamb

Guests

• Sophie Wales, Director of Regulatory Policy at ICAEW
• Catherine Hardinge, Partner, Price Bailey    

Producer

Natalie Chisholm

Episode first published: 3 February 2026

Podcast recorded: 28 January 2026