Explainability
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Connecticut's Banking Department Says It Plans to Review the AI Systems of the Entities It Regulates During Supervisory Examinations
In guidance dated September 22, 2026, the Connecticut Department of Banking set out its expectations for how the Connecticut-chartered financial institutions and other entities it licenses or regulates should govern the AI systems they use, and said it plans to review those systems and related policies and procedures during supervisory examinations.
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The FSB Describes Effective Human Oversight of AI at Financial Institutions as Meaningful, Not Nominal
On October 15, 2026, the Financial Stability Board published its final report on sound practices for financial institutions' responsible adoption of AI. Effective human oversight, it says, is "meaningful," as opposed to oversight that is nominal or driven by what it calls tick-the-box compliance.
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Professional ethics Judgment and competence
Responsibility Remains Human: ACCA's Report on Ethics in Accountancy, October 2026
In a report marked October 2026, the Association of Chartered Certified Accountants found that the use of AI "ranks first in the top three ethical challenges reported by respondents." It also sets out a checklist for ethical challenges involving AI use.
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Evidence and documentation Documenting AI-prepared work
Such That Another Professional Can Understand: Australia's Auditing Standard Setter on AI Audit Tools, July 2025
In July 2025 Australia's Auditing and Assurance Standards Board set out considerations for auditors who use AI tools. Among them is documentation "Such that another professional can understand" the matters the page lists, including the design and use of the tool.
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Evidence and documentation Testing the data and the tools
Functions as Intended: The FRC's Review of How Audit Firms Certify Their Automated Tools, June 2025
In June 2025 the UK's audit regulator published its review of how the six largest audit firms certify the automated tools their auditors use, a snapshot of the firms' processes as they described them in 2024. It found no formal monitoring by the firms "to quantify the audit quality impact of using ATTs," though their use "may sometimes be captured in other activities such as root cause analysis."
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Evidence and documentation Documenting AI-prepared work
What Should Be Found on the File: The UK Audit Regulator's Guidance on Documenting AI Tools, June 2025
In June 2025, the UK's Financial Reporting Council published an illustrative example and guidance on documenting tools that use AI in audits. The guidance "sets out expectations on what should be found on the file, and what can reasonably be documented centrally."
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Partial Understanding: The Bank of England and FCA's Survey of AI in UK Financial Services, November 2024
In November 2024, the Bank of England and the FCA published the results of their 2024 survey of AI in the UK financial firms they regulate. Many firms said they had only "partial understanding" of the AI they use, largely because of third-party models.
