Hong Kong Regulator to Assess AI Use by Audit Firms

Hong Kong will review how audit firms use artificial intelligence, with the Accounting and Financial Reporting Council (AFRC) preparing guidance to raise awareness and support responsible deployment, Financial Secretary Paul Chan said. The initiative aligns with the government’s “twin-engine” AI strategy to make AI a core industry and upgrade traditional sectors. Global regulators are examining AI’s impact on data integrity, transparency and liability in assurance work. The AFRC’s guidance is expected to address governance and documentation standards for AI-enabled audit tools as firms expand pilots in planning, risk assessment and anomaly detection. The move aims to balance innovation with audit quality and investor protection as AI adoption accelerates.