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